Question 1
If the S&P 500 index is at 2,888, then the cash value of an S&P 500 index option is
◦ $28.88.
◦ $2,888.
◦ $28,880.
◦ $288,800.
Question 2
If yields on Treasury bonds rise
◦ the value of the corresponding bonds will rise and the value of interest rate options will fall.
◦ the value of the corresponding bonds and the value of interest rate options will both fall.
◦ the value of the corresponding bonds will fall and the value of interest rate options will rise.
◦ the value of the corresponding bonds and the value of interest rate options will both rise.