A speculator purchases a put option on Treasury bond futures with a September delivery date with a strike price of 85-00. The option has a premium of 2-00. Assume that the price of the futures contract decreases to 82-00 on the expiration date and the option is exercised at that point (if it is feasible). What is the net gain?

Answer rating: 100% (QA)

To calculate the net gain from exercising a put option on Treasury bond futures we need to consider ... View the full answer