Which of the Following Is True When the Futures Price

question 9

Multiple Choice

Which of the following is true when the futures price exceeds the spot price?

• A) Calls on futures should never be exercised early
• B) Put on futures should never be exercised early
• C) A call on futures is always worth at least as much as the corresponding call on spot
• D) A call on spot is always worth at least as much as the corresponding call on futures

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Definitions:

Choiceboards

Interactive, online systems that allow individual customers to design their own products by choosing from a variety of features, components, and services.

Individuality

The quality or character that distinguishes one person or thing from others; uniqueness or distinctiveness.

Interactivity

The feature of a system that allows for two-way communication or interaction, often used in digital contexts.

Choiceboard

A choiceboard is an interactive online system that allows consumers to customize products or services according to their preferences before making a purchase.