1. An example of simultaneous buying of one bond (for example, with fixed rate coupon payments) and selling of another (for example, with variable rate interest payments) occurs when one participates in a
bond ladder strategy
bond swap
interest rate futures transaction
bond portfolio immunization strategy
2. If an investor strongly believes that the stock market is going to have a sharp decline shortly, he or she could maximize profit by
short selling stock-index futures contracts
hedging current short positions
using stock-index futures to straddle the market
buying stock-index futures contracts