If you look at the financial page listings for options contracts and find that prices on call options on Treasury bonds are rising over a particular time period, options market investors must expect that
A)Treasury bond prices will be higher in the future.
B)Treasury bond prices will be lower in the future.
C)Treasury bond yields will be higher in the future.
D)Call option prices will fall again at the end of the period.

Question

Quizplus · Accepted Answer

When call option prices on Treasury bonds are rising, it indicates that investors are willing to pay more for the right to purchase Treasury bonds in the future at a specific price (strike price). This suggests that investors believe Treasury bond prices will be higher in the future, which means lower yields on those bonds.

If You Look at the Financial Page Listings for Options