Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The September T-bond futures contract is currently selling at 111-05 and September call option on T-bond futures for a strike price of 115-00 is currently
The September T-bond futures contract is currently selling at 111-05 and September call option on T-bond futures for a strike price of 115-00 is currently quoting at 2-24. If an investor purchases one contract of the call option at the current market price and if the T-bond futures contract settles at 118-05 on the expiration day, what will be the net gain/loss for the investor?
A. $781.25
B. $281.25
C. -$359.38
D. $791.25
E. $566.25
The correct answer is A, I need to know how to get it??
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started