Options on Futures Contracts Expire After the Underlying Futures Contract

question 24

True/False

Options on futures contracts expire after the underlying futures contract expires.

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Definitions:

In Treasury

Refers to stocks or bonds that a company keeps in its own treasury after they have been repurchased or are not yet issued.

Noncumulative

A characteristic of certain preferences or instruments that do not allow for the accumulation of unpaid dividends or benefits if they are not paid in a given period.

Nonparticipating

In the context of insurance or preferred stock, it refers to policies or shares that do not share in the profits beyond a specified amount.

Weighted-average

A calculation that takes into account the varying weights of different items in a dataset, often used in inventory valuation or determining cost per unit.