13****382022-01-11 22:57:03

A German housing corporation needs to hedge against rising interest fatès. It has chosen to use futures on 10-year German government bonds. Which position in the futures should the corporation take, and why? Take a long position in the futures because rising interest rates lead to rising futures prices. Take a short position in the futures because rising interest rates lead to rising futures prices. Take a short position in the futures because rising interest rates lead to declining futures prices. Take a long position in the futures because rising interest rates lead to declining futures prices.