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Selma speculates in the Canadian bond market in order to hedge against changes in interest rates that may affect her position in the market. Her
Selma speculates in the Canadian bond market in order to hedge against changes in interest rates that may affect her position in the market. Her latest market analysis points to an increase in the stock market due to another drop in the overnight rate. She recently purchased a future based on Government of Canada bonds with a 3-month settlement date, locked in at 4.25%. What type of futures contract does her purchase represent? a) stock market futures contract b) foreign currency futures contract c) cash market futures contract d) interest rate futures contract
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