The Price of a December Put Futures Option Is Quoted

question 5

Multiple Choice

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?

• A) $5,520.00
• B) $5,812.50
• C) $6,625.00
• D) $8,250.00

Grasp the first law of demand.

Understand the effect of government policy changes on demand elasticity.

Apply the concept of marginal analysis in production decisions.

Describe the differences between types of goods based on income changes.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time, outlining planned financial transactions and goals.

Desired Response

The specific reaction or reply sought by the initiator of communication, often aiming to achieve a particular outcome.

Explain

To make (an idea, situation, or problem) clear to someone by describing it in more detail or revealing relevant facts or ideas.

Forwarded

The act of sending a message or document received from one party to another party.