If you buy a put option on a $100,000 Treasure bond futures contract with an exercise price of 97 and the price of the Treasury bond futures is 130 at expiration, is the contract in the money, out of the money or at the money? What is your profit or loss on the contract if the premium was $5,000? The exercise price and the futures price are quoted in points and each point is $1,000

Q: which one is correct please confirm? Q18: "If, for a $1000 premium, you buy a $100,000 call option…

A: Premium Paid = $1000 Profit on Call Option =$4000

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Q: If you purchase a $100,000 interest-rate futures contract for 110, and the price of the Treasury…

A: The answer and the explanation is provided below:

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A: The answer is as fallows

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Q: Q16: "If you purchase a $100,000 interest-rate futures contract for 105, and the price of the…

A: Profit = (Price at Expiration - Purchase Price ) * 1000

Q: "If you sell a $100,000 interest-rate futures contract for 105, and the price of the Treasury…

A: Price at Expiration = 108 Contract Price = 105

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A: Long strangle: This option holder will buy a call option and a put option on a stock simultaneously…

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A: Formula:

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Q: If, for a $1000 premium, you buy a $100,000 call option on bond futures with a strike price of 110,…

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Q: Q7: "If, for a $1000 premium, you buy a $100,000 put option on bond futures with a strike price of…

A: Profit on Put option = ($114 -$110 ) *1000 Profit on put option = $4*1000

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A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…