Question: If all is corect I will give a thumbs up . Suppose Carlos expects interest rates to decrease and purchases a call option on Treasury
If all is corect I will give a thumbs up .
Suppose Carlos expects interest rates to decrease and purchases a call option on Treasury bond futures from Deborah. The exereise price on Treasury bond futures is 89-00. The call option is purchased at a premium of 4-00. Assume that interest rates do decline and, as a result, the price of the Treasury bond futures contract increases over time to a value of 96-00 shortly before the option's expiration date. If Carlos decides to exercise the option, his profit will be The profit that Deborah will make will be
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