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

question 68

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 construct a collar to reduce the cost of the cap by selling a floor.What is the net cost of the least expensive such collar? (Be sure the strike prices on the call and the put are NOT the same!)

• A) $0.10 per contract outflow
• B) $10 per contract outflow
• C) $0.10 per contract inflow
• D) $10 per contract inflow

---

Definitions:

James Marcia

A developmental psychologist known for his work on adolescent identity formation and his expansion of Erikson’s stages of psychosocial development.

Identity Statuses

The various phases an individual goes through in the development of their identity, according to psychological theory.

Commitment and Crisis

A concept in developmental psychology signifying the urgent need to make decisions and commitments amidst life transitions or crises.

Myelinization

The process of coating the axons of neurons with a fatty sheath, myelin, which increases the speed at which electrical impulses propagate along the neural pathways.