If you buy a put option for $$100,000$ face value long$-$term Treasury bonds for a $2-$point premium and a strike price of $115$ that expires at the end of June, and at the end of June the price of the bond is $113,$ then you will

A$.$ exercise the option and earn a profit of $$2,000$

B$.$ exercise the option and earn a profit of $$4,000$

C$.$ not exercise the option and lose $$2,000$

D$.$ not exercise the option and break even.

E$.$ exercise the option and break even.

Suppose you purchase $$100,000$ face value long$-$term U S$.$ Treasury bonds at $110$ and you wish to hedge your interest$-$rate risk over the next year. You sell a futures contract for $$100,000$ face value U$.$S$.$ Treasury bonds for delivery in one year for $110.$ When one year has passed, interest rates have risen so that the price of $$100,000$ face value Treasury bond is $105$ Which of the following statements is true?

A$.$ You successfully engaged in an interest$-$rate swap

B$.$ You successfully employed a put option.

C$.$ You successfully emplayed a call option

D$.$ You successfully hedged your interest$-$rate risk

E$.$ You failed to reduce your interest$-$rate risk.