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Consider Cindy who took a 3-month maturity option on the bank bill as the undertying asset. Panel A plots the option terminal payolf for Cindy:

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Consider Cindy who took a 3-month maturity option on the bank bill as the undertying asset. Panel A plots the option terminal payolf for Cindy: Which of the following is most likely to be TRUE? Select one alternative: Cindy speculated that the bank bill price in 3 months will increase. Select one alternative: Cindy speculated that the bank bill price in 3 months will increase. Cindy speculated that the bank bill spot rate (ie., the yield of the bank bial) in 3 months will decrease. Cindy took a long position on the call option on the bank bill Cindy took a long position on the put option on yield. All of the above are true statements

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