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The Price of a December Put Futures Option Is Quoted

question 5

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The price of a December put futures option is quoted as 5-52. Each Treasury bond futures contract is for delivery of $100,000 in Treasury bonds. What is the cost of one contract?


Definitions:

Benzenesulfonic Acid

An organosulfur compound characterized by a benzene ring bonded to a sulfonic acid group, used in various chemical syntheses.

Bromination

A chemical reaction involving the addition of bromine to another substance, often leading to the substitution or addition of bromine atoms in organic compounds.

Toluene

A colorless, water-insoluble liquid hydrocarbon (C7H8) derived from coal tar or petroleum, used as a solvent and in the manufacture of various chemicals.

Mononitration Product

A compound resulting from the introduction of one nitro group (-NO2) into a molecule, typically through a nitration reaction.

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