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:

Cognitive Psychology

A branch of psychology focused on studying mental processes such as perception, memory, thought, and problem-solving.

Behavioral Psychology

A branch of psychology that focuses on the study and alteration of people's behaviors, including their actions, emotions, and thoughts.

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