You hold a futures contract to take delivery of us treasury


You hold a futures contract to take delivery of U.S. Treasury bonds in 6 months. If the entire term structure of interest rates shifts down over the 6-month period, the value of the forward contract will have _____ the date of delivery.

A) either decreased in value or have a zero value by

B) zero value by

C) increased in value by

D) decreased in value by

E) the same value as when obtained on

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You hold a futures contract to take delivery of us treasury
Reference No:- TGS02346641

Expected delivery within 24 Hours