What is your profit or loss on contract

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1. Suppose you buy a call option on a $100,000 Treasury bond futures contract with an exercise price of $98,000 for a premium of $500. If on expiration the price of the futures contract is $98,500, what is your profit or loss on the contract?

2. Suppose you buy a put option on a $100,000 Treasury bond futures contract with an exercise price of $102,500 for a premium of $2000. If on expiration the futures contract has a price of $100,000, what is your profit or loss on the contract?

Reference no: EM131552517

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