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Explain why there is an active market in options on US Treasury Bond futures but not...

Explain why there is an active market in options on US Treasury Bond futures but not in options on US Treasury bonds.

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Answer #1

Below in sane of the Riasons LJby ◇T-Band future optan are more Active then T-Bon d-pticnsMost im prtant Reaaon i Hndgina Hedging me ans to SRoduca Riak xpsung of ox isting conditianA by invetin pandin the Risk of m annteo/st Rete Vanious banks, initituti Muuhal funda, inveA-ton Buuin /selling opti Le cause people Hedo thei Le sho takas Loons 0n n vesta in ap tians tutun sレrn an. Kot.to eeen uncentain man ket RiSKDiggest Reasan is Volitalit changa in bund) -the On Spot mankot, ton tho mono aladile than optins on spot, -An bitnatim can handly avalable LJhun futures optim△ both used. o Suitabla fon Spocula-tion Spot bands anegenally nthas uAed on Speculatim uuposesommen

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