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

---

Definitions:

Anna Freud

A pioneer in child psychoanalysis and the youngest daughter of Sigmund Freud who emphasized the importance of the ego and its defense mechanisms in psychology.

Incongruity

The state of being out of place, lacking harmony or consistency with surround elements or expectations.

Theory of Humor

A set of ideas intended to explain what humor is and what social functions it serves, including why we find certain things funny.