If you buy a call option on Treasury futures at 110,and at expiration the market price is 115,the ________ will ________ exercised.
A)call;be
B)put;be
C)call;not be
D)put;not be

Question

Quizplus · Accepted Answer

If you buy a call option, you have the right to buy the underlying asset at the strike price (in this case, 110). If the market price at expiration is higher than the strike price (in this case, 115), it is advantageous to exercise the call option and buy the underlying asset at the lower strike price. Therefore, the call option will be exercised.

If You Buy a Call Option on Treasury Futures at 110,and