Brad, a speculator, expects interest rates to increase and purchases a put option on Treasury bond futures with an exercise price of 95-32.The premium paid for the put option is 2-36.Just prior to the expiration date, the price of the Treasury bond futures contract is valued at 93-22.Brad exercises the option and closes out the position by purchasing an identical futures contract.Brad's net gain from this speculative strategy is $____.

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The Answer of Brad, a speculator, expects interest rates to increase and purchases a put option on Treasury bond futures with an exercise price of 95-32.The premium paid for the put option is 2-36.Just prior to the expiration date, the price of the Treasury bond futures contract is valued at 93-22.Brad exercises the option and closes out the position by purchasing an identical futures contract.Brad's net gain from this speculative strategy is $____.

Brad, a Speculator, Expects Interest Rates to Increase and Purchases