There are three reasons why futures options on fixed-income securities have largely supplanted options on physicals as the options vehicle used by institutional investors. Which of the below is NOT one of these three reasons?
A) Unlike options on fixed-income securities, futures options on Treasury coupon futures do not require payments for accrued interest to be made.
B) Futures options are believed to be "cleaner" instruments because of the reduced likelihood of delivery squeezes.
C) In order to price any option, it is imperative to know at all times the price of the underlying instrument.
D) None of these
Correct Answer:
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