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

---

Definitions:

Topical Description

The detailed depiction or discussion focused on a particular topic or subject.

Lay Testimony

Evidence or statements provided in a legal setting by a witness who is not considered an expert on the matter being discussed.

Emotional Appeal

A persuasive technique that attempts to influence an audience's emotions to gain support or agreement.

Illustrative Testimony

Evidence or examples provided in the form of stories or anecdotes to clarify a point or support an argument.