If,for a $1000 premium,you buy a $100,000 call option on bond futures with a strike price of 114,and at the expiration date the price is 110,your ________ is ________.

Name: If,for a $1000 premium,you buy a $100,000 call option on bond futures with a strike price of 114,and at the expiration date the price is 110,your ________ is ________.
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Question

Quizplus · Accepted Answer

The call option allows you to buy at 114, but the market price is 110, so the option is not exercised. The loss is the premium paid, which is $1000.

If,for a $1000 Premium,you Buy a $100,000 Call Option on Bond