A Eurodollar Futures Option Contract Has a Strike Price of 97

question 3

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 put?

• A) $0
• B) $1,250
• C) $1,750
• D) $2,500

---

Definitions:

Administering Benefit Packages

The process of managing and delivering employee benefit programs, including health insurance, retirement plans, and other perks.

Administrative Burden

The workload and stress associated with managing organizational policies, procedures, and paperwork.

Increased Uniformity

The process of making aspects such as procedures, policies, or products more consistent and standardized across an organization or industry.

Physiological Needs

Basic physical requirements for human survival, such as food, water, and shelter.