Which of the Following Is True About a Futures Option

question 18

Multiple Choice

Which of the following is true about a futures option and a spot option on the same underlying asset when they have the same strike price? The expiration dates of the two options and the futures are all the same.

• 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:

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences.

Performance

The act of carrying out a task or the level of efficiency with which it is executed.

Recognition

The ability to identify previously encountered events, objects, or people, demonstrating memory of the experience.

Sensory Register

The initial stage of storing sensory information, where sights, sounds, and other sensory input are retained very briefly before being processed.