The current 1 0 - year US treasury yield is 4 . 6 8 % ( 4
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Question:
The current year US treasury yield is A speculator A believes the Fed would not raise rate and the year yield should be at within months. Another speculator B believes the year yield should be at within months.
Part a A is plan to buy an at the money strike price equals to current market price put option, the price is $ for the TNX option. How much is the total gainlost if the year yield is and
Part b B is plan to sell a TNX put spread with an at the money and an in the money put option strike price at which is currently traded at $ How much is the total gainlost for this put spread if the year yield is and
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