The other alternative is to purchase a PUT contract on euro denominated bonds.
Calculate the net profit or loss per unit on a put option contract with a strike price of €1,008 with a premium of €4.00 for the following maturity prices:
€985, €1,000, €1,015 and €1,020
Explain how the option contract in part e protects against interest rate rises and how this form of protection differs from the futures contract.