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call option and put option for interest rate futures

Former userFormer user10y ago

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John MoffatJohn MoffatTutor10y ago#1
The answer certainly is A. If the interest rate rises the futures price will fall. A put option gives you the right to sell a future at a fixed price, and so if futures prices fall then you buy at the low price and sell at the strike price and make a profit.
John MoffatJohn MoffatTutor10y ago#2
You are welcome :-)
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