Examine the historical prices of the \(\mathrm{T}\)-note futures and some of the futures call and futures puts options you selected in Exercise 5. Select a time period that the contracts were active.

a. Use the Chart screen (Chart ) to create multigraphs for the futures, call futures, and put futures. On the Chart Menu screen, select the Standard G chart; once you have loaded your securities, go to "Edit" to put your graphs in separate panels.

b. Select a period and calculate the profit or loss from opening and closing a long put position at the futures put prices at the beginning and ending dates for your selected period.

c. Comment on any follow-up actions you could have taken during the period to change your position to a profitable one if you had a loss or more profitable if you had a profit.

Exercise 5.

Select a CBT T-note futures (e.g., five-year T-note: FVA ; EXS to find expirations; \(\mathrm{FVH} 7<\) Comdty> to load March 2017 five-year T-Note futures). On the selected futures screen, type OSA to bring up the OSA screen, and select "Listed Options" on the contract from the red "Positions" dropdown tab to bring up listed futures options and then select the futures options to include in your evaluation. Using the Bloomberg OSA screen and "Scenario Chart" tab, evaluate some of the following option strategies that would reflect a bearish position in which you expected interest rates to rise and bond prices to decrease:

a. Put Purchase.

b. Simulated Put: Long in a call and short in the futures on a 1:1 basis.

c. Bear Call Spread: Long in call with high X and short in call with low X.

d. Bear Put Spread: Long in put with high \(\mathrm{X}\) and short in put with low X.

e. Strip Purchase: Straddle purchase with additional puts (e.g., long call and long 2 puts).