Which Two of the Following Are True When Futures Prices

question 4

Multiple Choice

Which two of the following are true when futures prices exceed spot prices? choose two)

• A) American call options on futures are worth more than the corresponding American call option on spot.
• B) American call options on futures are worth less than the corresponding American call option on spot.
• C) American put options on futures are worth more than the corresponding American put option on spot.
• D) American put options on futures are worth less than the corresponding American put option on spot.

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Definitions:

Dynamic Traits

Personality characteristics that are adaptive and change in response to different environments or situations.

Love and Forgiveness

Fundamental human emotions and actions that involve deeply caring for someone's wellbeing and releasing feelings of resentment or anger towards that person or oneself.

Lawful and Orderly

Characterizes behavior or systems that operate according to established laws or regulations, ensuring predictability and stability.

Predictable Behavior

Actions or reactions that can be expected based on previous patterns or known psychological principles.