A Eurodollar Futures Option Contract Has a Strike Price of 97

question 19

Multiple Choice

A Eurodollar futures option contract has a strike price of 97 and the Eurodollar interest rate is 2.50%. What is the intrinsic value of the contract if the option is a call?

• A) $0
• B) $1,250
• C) $1,750
• D) $2,500

---

Definitions:

Entitlements

Benefits or rights granted by law, such as Social Security in the United States.

Social Security

A government program that provides financial assistance to people who are retired, disabled, or survivors of deceased workers.

Due Process

The fair treatment through the normal judicial system, especially as a citizen's entitlement.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and provides all citizens with equal protection under the laws.