Why are options on bond futures more actively traded

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Reference no: EM131237678

1. Explain the difference between a call option on yen and a call option on yen futures.

2. Why are options on bond futures more actively traded than options on bonds?

3. ‘‘A futures price is like a stock paying a dividend yield.'' What is the dividend yield?

4.A futures price is currently 50. At the end of six months it will be either 56 or 46. The risk-free interest rate is 6% per annum. What is the value of a six-month European call option on the futures with a strike price of 50?

Reference no: EM131237678

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