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    Futures and Options Markets Study Set 2
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    Exam 21: Interest Rate Options
  5. Question
    A Eurodollar Futures Option Contract Has a Strike Price of 97
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A Eurodollar Futures Option Contract Has a Strike Price of 97

Question 3

Question 3

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 put?


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

Correct Answer:

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