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Use the Following Information on CBOE 13-Week T-Bill Rate Options

Question 10

Multiple Choice

Use the following information on CBOE 13-week T-bill rate options to answer the following question(s) .
Use the following information on CBOE 13-week T-bill rate options to answer the following question(s) . -Refer to CBOE.Suppose you want to construct a collar to reduce the cost of the cap by selling a floor.What is the net cost of the least expensive such collar? (Be sure the strike prices on the call and the put are NOT the same!) A) $0.10 per contract outflow B) $10 per contract outflow C) $0.10 per contract inflow D) $10 per contract inflow
-Refer to CBOE.Suppose you want to construct a collar to reduce the cost of the cap by selling a floor.What is the net cost of the least expensive such collar? (Be sure the strike prices on the call and the put are NOT the same!)


A) $0.10 per contract outflow
B) $10 per contract outflow
C) $0.10 per contract inflow
D) $10 per contract inflow

Correct Answer:

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