What Is Exchanged When a Put Option on an Interest

question 17

Multiple Choice

What is exchanged when a put option on an interest rate futures is exercised?

• A) A long position in a futures contract for the holder of the option and a short position in a futures contract for the option writer
• B) A short position in a futures contract for the holder of the option and a long position in a futures contract for the option writer
• C) Cash payoff, a long position in a futures contract for the holder of the option, and a short position in a futures contract for the option writer
• D) Cash payoff, a short position in a futures contract for the holder of the option, and a long position in a futures contract for the option writer

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Definitions:

Increased Cost

A rise in the financial expenditure required for resources, materials, labor, or operations relative to initial estimates or historical norms.

Organizational Skills

The ability to use time, energy, resources, etc., efficiently and effectively to achieve desired outcomes.

Project Managers

Professionals responsible for planning, executing, and closing projects while managing the resources, scope, and stakeholders involved.

Complex Projects

Initiatives that are characterized by a high degree of uncertainty, risk, and interdependencies among various tasks.