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:

Wall Muscles

Muscle groups found in the wall of body cavities, such as the abdominal muscles which support and contain the organs of the abdomen.

Outermost Layer

The outermost layer refers to the surface or external layer of an object or body, which is directly exposed to the environment.

Iliac Crest

The curved upper border of the ilium, the largest bone of the pelvis, important as a landmark for various surgical and clinical procedures.

Quadratus Lumborum

A muscle in the lower back on either side of the lumbar spine that helps in bending the trunk sideways.