If You Buy an Option to Buy Treasury Futures at 110,and

question 7

Multiple Choice

If you buy an option to buy Treasury futures at 110,and at expiration the market price is 115,

• A) the call will be exercised.
• B) the put will be exercised.
• C) the call will not be exercised.
• D) the put will not be exercised.

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Definitions:

Efficiency Gains

Improvements that increase the quality, speed, or productivity with which organizations can produce goods or services, often resulting in cost savings.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible.

Net Efficiency

A measure of the effectiveness of an operation, typically calculated as the ratio of useful output to total input, factoring in losses and waste.

Remittances

Money sent by migrants to their home country, often to support family members.