The Value of a Futures Option Is Defined as

question 106

Multiple Choice

The value of a futures option is defined as

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

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Definitions:

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