Page 232 - AFM Integrated Workbook STUDENT S18-J19
P. 232
Chapter 11
Options on interest rate futures
5.1 Basic idea
Traded interest rate options are options on futures contracts.
A call option gives the holder the right to buy the futures contract, and a
put option gives the holder the right to sell the futures contract.
Borrowings sell futures buy put options
Deposits buy futures buy call options
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