Which of the Following Is True About a Futures Option

question 19

Multiple Choice

Which of the following is true about a futures option and a spot option on the same underlying asset with an identical strike price and expiration date?

• A) A European call spot option and an American call futures option are equivalent
• B) An American call spot option and a European call futures option are equivalent
• C) A European put spot option and European put futures option are equivalent
• D) An American put spot option and American put futures option are equivalent

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Definitions:

Descriptive Studies

Research methods focused on observing, describing, and documenting aspects of a situation as it naturally occurs.

Independent Variable

An experimental factor that is adjusted by the researcher to examine its impact on a specific outcome or dependent variable.

Instruments

Tools or mechanisms used in research to collect data, such as surveys, tests, or observation checklists.

Pilot Test

An initial small-scale experiment or trial run conducted to evaluate the feasibility, duration, cost, and adverse events involved in a subsequent larger experiment.