If you are long a FRA (forward rate agreement) and short a ED （Eurodollars) future with the same fixing dates, do you have positive convexity or negative convexity? Why?
According to the following thread a Eurodollar future has no convexity and the FRA has positive convexity. Why is this true? Or if it's not true, why is it not true? Long Forward Rate Agreement, short Eurodollar futures
I think that the answer is you will have a negative convexity because the convexity adjustment would make a long future have a higher convexity than the FRA. Can anyone tell me if my logic and answer is right?