What Is the Value of a European Call Futures Option

question 7

Multiple Choice

What is the value of a European call futures option where the futures price is 50,the strike price is 50,the risk-free rate is 5%,the volatility is 20% and the time to maturity is three months?

• A) 49.38N(0.05)-49.38N(-0.05)
• B) 50N(0.05)-50N(-0.05)
• C) 49.38N(0.1)-49.38N(-0.1)
• D) 50N(0.1)-49.38N(-0.1)

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Definitions:

Axillary Artery

A major blood vessel that carries oxygenated blood to the lateral aspect of the thorax, armpit, and upper limb.

Brachium

Refers to the upper arm area, specifically the portion between the shoulder and the elbow.

Esophageal Arteries

Arteries that supply blood to the esophagus.

Subscapular Artery

A blood vessel that supplies blood to the scapula area, including the shoulder blade and surrounding muscles.