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Business, 16.11.2019 06:31 mendezj67

Holly kombs, a speculator, expects interest rates to decline in the near future. thus, she purchases 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, kombs decides to exercise the option and closes out the position by selling an identical futures contract.
a) true
b) false

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