A put option on Eurodollar deposit futures is most likely to be used by a bank to:

A. reduce its interest sensitive liabilities.

B. protect variable-rate loans and securities.

C. offset a positive interest-sensitive gap.

D. offset a negative interest-sensitive gap.

E. None of the options are correct.

14. Suppose $100,000 T-Bond futures contract whose underlying's duration is 9 years and has a current market price of $98,750. Market interest rates are 6 percent today but are expected to rise to 7.5 percent. What is the expected change in this futures contract's market price as a result of this change in interest rates?

A. $12,57 7

B. - $12,57 7

C. $62,88 3

D. - $62,88 3

E. None of the options are correct

15. Suppose a Eurodollar time deposit futures contract whose underlying's duration is 0.5 years and has a current market price of $950,000. Market interest rates are 8.5 percent and are expected to fall to 7.5 percent. What is the expected change in this futures contract's market price as a result of this change in interest rates?

A. $4,37 8

B. - $4,378

C. $30,64 5

D. - $30,64 5

E. None of the options are correct