Question: Suppose Alex expects interest rates to decrease and purchases a call option on Treasury note futures from Becky. The exercise price on Treasury note futures

Suppose Alex expects interest rates to decrease and purchases a call option on Treasury note futures from Becky. The exercise price on Treasury note futures is 86-00. 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 note futures contract increases over time to a value of 97-00 shortly before the options expiration date. If Alex decides to exercise the option, his profit will be_____________.

The profit that Becky will make will be______

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