Which two of the following are true when futures prices exceed spot prices? choose two)
A) American call options on futures are worth more than the corresponding American call option on spot.
B) American call options on futures are worth less than the corresponding American call option on spot.
C) American put options on futures are worth more than the corresponding American put option on spot.
D) American put options on futures are worth less than the corresponding American put option on spot.

Question

Quizplus · Accepted Answer

The Answer of Which two of the following are true when futures prices exceed spot prices? choose two)
A) American call options on futures are worth more than the corresponding American call option on spot.
B) American call options on futures are worth less than the corresponding American call option on spot.
C) American put options on futures are worth more than the corresponding American put option on spot.
D) American put options on futures are worth less than the corresponding American put option on spot.

Which Two of the Following Are True When Futures Prices