Consider a European one-year call futures option and a European one-year put futures options when the futures price equals the strike price.Which of the following is true?
A) The call futures option is worth more than the put futures option
B) The put futures option is worth more than the call futures option
C) The call futures option is sometimes worth more and sometimes worth less than the put futures option
D) The call futures option is worth the same as the put futures option

Question

Quizplus · Accepted Answer

Put call parity is c+ Ke^-rT =p+ F₀e^-rT When F₀=K it follows that c = p.

Consider a European One-Year Call Futures Option and a European