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

Understand the concept of technology spillover and its classification as an externality.

Distinguish between command-and-control and market-based policies for correcting externalities.

Understand the implications of corrective taxes and subsidies on economic efficiency and government revenue.

Understand the role and impact of patent protection in managing technology spillovers.

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Definitions:

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