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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