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:

Intermediates

Reactive species that are formed during the chemical reactions and lie in the reaction pathway between the reactants and the final products.

Dimethylbut-1-ene

An organic compound that is a branched alkene with the formula C6H12, specifically one of the isomers with a double bond at the first carbon.

Major Alcohol

The primary alcohol product in higher concentration from a mixture or reaction process.

Mechanism

Describes the detailed steps of a chemical reaction, explaining how reactants are transformed into products at the molecular level.