Business
Business, 16.12.2020 17:10, morgannwaldrupp

Reese Insurance company sold a call option on interest rate futures with an exercise price of 92-10. The premium on the call option is 2-24. Just before the expiration date, the price of Treasury bond futures is 97-14. At this time, the option was exercised as the buyer closed out the position by selling an identical futures contract. Reese's net gain from selling the call option is $. A) 2,687.50
B) -2,687.50
C) 2,375.00
D) 7,437.50
E) none of the above

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Answers: 3

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Reese Insurance company sold a call option on interest rate futures with an exercise price of 92-10....

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