Marcie Purchases a Call Option on Interest Rate Futures with an Exercise

question 12

Multiple Choice

Marcie purchases a call option on interest rate futures with an exercise price of 92-10. The premium on the call option is 2-24. Just before the expiration date, the price of Treasury bond futures is 97-14. At this time, Marcie decides to exercise the option and closes out the position by selling an identical futures contract. Marcie's net gain from this strategy is $____.

• A) -2,687.50
• B) 2,687.50
• C) 2,375.00
• D) 7,437.50
• E) none of the above

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Definitions:

Brain Structure

The physical organization and arrangement of different parts of the brain, including its cells and connections.

Sensory Relay Station

Refers to the thalamus, a structure in the brain that processes and relays sensory information to the appropriate areas of the brain.

Thalamus

A structure in the brain that acts as a relay station for sensory and motor signals to the cerebral cortex.

Limbic System

A complex system of nerves and networks in the brain, involved in emotions and drives.