7. If you buy a put option on a $100,000 Treasury bond futures contract with an exercise...

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7. If you buy a put option on a $100,000 Treasury bond futures contract with an exercise price of 95 and the price of the Treasury bond is 120 at expi- ration, 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 $4000?

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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