Question: An FI manager writes a call option on a T-bond futures contract with an exercise price of 11400 at a quoted price of 0-55. a.

An FI manager writes a call option on a T-bond futures contract with an exercise price of 11400 at a quoted price of 0-55.
a. What type of opportunities or obligations does the manager have?
b. In what direction must interest rates move to encourage the call buyer to exercise the option?

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