if you buy an option to sell Canada futures at 115, and at expiration the market price is 110, ________.
A) the call will be exercised
B) the put will be exercised
C) the call will not be exercised
D) the put will not be exercised

Question

Quizplus · Accepted Answer

Since the market price is below the strike price of the option, the option holder can sell the futures at a higher price by exercising the put option. Therefore, the put will be exercised.

If You Buy an Option to Sell Canada Futures at 115