If an Individual Wished to Lock in a Future Deposit

question 4

Multiple Choice

If an individual wished to lock in a future deposit rate of 8 percent in the eurodollar Interest rate options market, she should

• A) purchase a call at a strike price of 92.
• B) purchase a put at a strike price of 108.
• C) sell a put at a strike price of 8.
• D) sell a call at a strike price of 92.

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Definitions:

Bar Chart

A graphical representation of data using bars of different heights or lengths proportional to the values they represent.

Histogram

A graphical representation of the distribution of numerical data, where the data is divided into bins or intervals, and the frequency of data within each bin is depicted by bars.

Dotplot

A simple graphical display used to compare frequency counts within categories or groups.

Statistical Inference

The process of drawing conclusions about a population's characteristics based on a sample drawn from that population.