Holly Kombs, a speculator, expects interest rates to decline in the near future. Thus, she purchases a call option on interest rate futures with an exercise price of 92-10. The premium on the call option is 2-24. Just before the expiration date, the price of Treasury bond futures is 97-14. At this time, Kombs decides to exercise the option and closes out the position by selling an identical futures contract.
A) True
B) False
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