YEAR GERMAN GOVERNMENT BONDS. WHICH POSITION IN THE FUTURES SHOULD...

10-year German government bonds. Which position in the futures should the corporation take, and why?

a.

Take a long position in the futures because rising interest rates lead to rising futures prices.

b.

Take a short position in the futures because rising interest rates lead to rising futures prices.

c.

Take a short position in the futures because rising interest rates lead to declining futures prices.

d.

Take a long position in the futures because rising interest rates lead to declining futures prices.