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1. Options on Futures Contract: In February, you purchase a call option, for a $3,000...

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1. Options on Futures Contract: In February, you purchase a call option, for a $3,000 premium, on the $100,000 June Treasury bond futures contract with a strike price of 120 Assume the Treasury bond futures contract has a price of 130 at the end of June Will the you exercise the option at the end of June? -Draw a graph of the call option profits associated with different market prices. See Graph of call option in CH. 14 (panel (a)) for assistance

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