Exercise of a Put Option on Interest Rate Futures by the Buyer

question 42

True/False

Exercise of a put option on interest rate futures by the buyer of the option results in the buyer putting to the writer the bond futures contract at an exercise price higher than the currently trading bond future.

---

Definitions:

White House Staff

Employees of the Executive Office of the President of the United States, including senior advisors, assistants, and other support roles directly serving the President.

Chief Executive

The highest-ranking executive in a company or government, responsible for making major corporate or policy decisions.

Administrative State

A concept that describes a government in which the executive branch, through various agencies, plays a significant role in regulation and policy implementation beyond traditional law enforcement.

Patronage

The power to control appointments to office or the right to privileges, often used by politicians to reward individuals for their support or loyalty.