The Value of a Futures Option Is Defined as

question 41

Multiple Choice

The value of a futures option is defined as

• A) the difference between the option's strike price and the market price of the underlying futures contract.
• B) the mark- to- market value divided by the strike price.
• C) the strike price of the option multiplied by the mark- to- market value.
• D) the difference between the option's strike price and its original purchase price.

---

Definitions:

European Continent

The European continent is one of the world’s seven continents, characterized by its distinct cultural and historical identity, encompassing a wide geographic area west of Asia.

Spain

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, diverse culture, and contributions to art, literature, and global exploration.

France

A country in Western Europe known for its rich history, cultural contributions, and significant role in international affairs.