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7 . Please answer the question related to futures options 7. Futures options Suppose Eric expects interest rates to increase and purchases a put option
Please answer the question related to futures options
7. Futures options Suppose Eric expects interest rates to increase and purchases a put option on Treasury note futures from Ginny. The exercise price on Treasury note futures is 97-00. The put option is purchased at a premium of 4-00. Assume that interest rates do increase and, as a result, the price of the Treasury note futures contract decreases over time to a value of 86-00 shortly before the option's expiration date. If Eric decides to exercise the option, his profit will be The profit that Ginny will make will be $
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