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Unformatted text preview: $120.00 per $100 face value. If the spot price of the option on the settlement date is $130.00, will you exercise your option? What will your decision be if the spot price is $110.00? If the spot price is $130.00, I will definitely exercise my option as the price to buy the T-Notes is lower at $120.00. However, if the spot price is $110, I will NOT exercise my option as I can buy the T-note at a price lower than the strike price....
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This note was uploaded on 02/13/2012 for the course ECON 423 taught by Professor Vd during the Spring '08 term at UNC.
- Spring '08