Suppose you buy a call option on a $100,000 Treasury bond futures contract with an exercise price of 105. If the price of the Treasury bond is 115 at expiration, is the option at the money, in the money, or out of the money? Determine the premium if the profit equals $8,000.

Answer rating: 100% (QA)

Call optio gives you right to buy Excercise price 105 Price of bond on e... View the full answer