Please kindly help me understand the answer of the question 31, Practice exam 1 Schweser , why interest rate falls, the long of eurobor future gains ( I think the long will loss)?
a long position in the future is equivalent to lending at a fixed rate. if rates fall, then i can lend at a higher rate and have a gain as a result
hm… would appreciate some more help
“Eurodollar futures contract as synthetic loan”