A Synthetic Put Option on Futures Could Be Constructed by Buying

question 14

True/False

A synthetic put option on futures could be constructed by buying a call option on futures and selling the futures.

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Definitions:

Coinsurance

An insurance policy provision under which the insurer and the insured share costs, after the deductible is met, according to a specific formula.

Insured

A person or entity covered by an insurance policy, protecting them against financial loss from specified risks.

Insurer

A company or entity that provides insurance coverage to policyholders in exchange for premiums.

Deductible

An amount that a policyholder must pay out of pocket before an insurance company will cover any expenses.