Find the payoff of an interest rate call option on the annual rate with an exercise rate of 10 percent if the one-period rate at expiration is 11 percent.(No days/360 adjustment is necessary and assume a $1 notional amount. )
A)0.12
B)zero
C)0.01
D)0.0090
E)none of the above

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The Answer of Find the payoff of an interest rate call option on the annual rate with an exercise rate of 10 percent if the one-period rate at expiration is 11 percent.(No days/360 adjustment is necessary and assume a $1 notional amount. )
A)0.12
B)zero
C)0.01
D)0.0090
E)none of the above

Find the Payoff of an Interest Rate Call Option on the Annual