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A Eurodollar Futures Option Contract Has a Strike Price of 97

Question 19

Multiple Choice

A Eurodollar futures option contract has a strike price of 97 and the Eurodollar interest rate is 2.50%. What is the intrinsic value of the contract if the option is a call?


A) $0
B) $1,250
C) $1,750
D) $2,500

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