There is a sharp fall in CHF interest rates. Which of the following statements is false?

1. Interest rate futures rise in price


2. CHF/USD FX rates will go down


3. Interest rate floors become more expensive


4. The price of government bond futures riseThere is a sharp fall in CHF interest rates. Which of the following statements is false?
CHF/USD FX rates will go down - False, as the CHF will rise due to increased expected investments into the country.





Interest rate floors become more expensive - False, interest rate floors protect against FALLS in interest rates, and they therefore fall in price as interest rates rise.





The price of gov bond futures rise - False, higher interest rates = higher yields and therefore lower price.





Interest rate futures rise in price - True, for obvious reasons.There is a sharp fall in CHF interest rates. Which of the following statements is false?
Interest rate futures just rose in price - YAWN.