If you buy a put option on Treasury futures at 115,and at expiration the market price is 110,the ________ will ________ exercised.
A)call;be
B)put;be
C)call;not be
D)put;not be

Question

Quizplus · Accepted Answer

If the market price is 110, it is lower than the strike price of 115, meaning the put option is in-the-money. As a result, the put option will be exercised, allowing the holder to sell Treasury futures at the higher strike price of 115. This is why choice B - put; be - is the correct answer.

If You Buy a Put Option on Treasury Futures at 115,and