An Option Contract Can Be Based on a Futures Contract

question 300

True/False

An option contract can be based on a futures contract to create a futures option.

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Definitions:

Multiple Correlation Coefficient

A statistical measure that represents the strength of the relationship between multiple independent variables and one dependent variable.

Predicted Values

The values estimated by a statistical model or equation based on the inputs of explanatory variables.

Explanatory Variables

Variables in a statistical model that are used to explain changes or variations in a response variable.

Regression Model

A statistical technique used to model and analyze the relationships between a dependent variable and one or more independent variables.