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

question 32

Multiple Choice

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

-Refer to CBOE.Suppose you want to cap your interest rate before a planned October borrowing.What is the cost of using the OCT 35 option to hedge?

• A) $110 per contract
• B) $1.10 per contract
• C) $120 per contract
• D) $1.20 per contract

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Definitions:

Agonist

A chemical or drug that binds to receptors in the brain and causes an action or response, often mimicking the effects of naturally occurring substances.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another.

Freud

Sigmund Freud, an Austrian neurologist best known for developing psychoanalysis, a method through which an analyst unpacks unconscious conflicts based on the free associations, dreams, and fantasies of the patient.

Dream Content

Refers to the images, thoughts, and sensations experienced during sleep.