If you buy a put option on a $100,000 Treasure bond futures contract with an exercise price of 97 and the price of the Treasury bond futures is 130 at expiration, is the contract in the money, out of the money or at the money? What is your profit or loss on the contract if the premium was $5,000? The exercise price and the futures price are quoted in points and each point is $1,000
If you buy a put option on a $100,000 Treasure bond futures contract with an exercise price of 97 and the price of the Treasury bond futures is 130 at expiration, is the contract in the money, out of the money or at the money? What is your profit or loss on the contract if the premium was $5,000? The exercise price and the futures price are quoted in points and each point is $1,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- If you buy a put option on a $100,000 Treasure bond futures contract with an exercise price of 97 and the price of the Treasury bond futures is 130 at expiration, is the contract in the money, out of the money or at the money? What is your profit or loss on the contract if the premium was $5,000? The exercise price and the futures price are quoted in points and each point is $1,000.
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