Use the Following Information on 13-Week T-Bill Rate Options to Answer

question 14

Multiple Choice

Use the following information on 13-week T-bill rate options to answer the following question(s) .

-Refer to CBOE.If you used the OCT 35 option to hedge rising rates,and the yield to maturity (YTM) on 13-week bills is 3.75 percent at the option's expiration,what is the outcome of your hedge?

• A) profit of $250 per contract
• B) profit of $130 per contract
• C) loss of $120 per contract
• D) no gain or loss,the option expires worthless

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A research method involving the collection of data outside of a laboratory setting, in the natural environment where phenomena of interest occur.

Spurious

Lacking authenticity or validity in essence or origin; not genuine, false.

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A connection or cooperative link between people, organizations, or concepts.

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Incidents where individuals unexpectedly come to rest on the ground or lower level, often leading to injuries, especially among older adults.