Which of the following is a false statement related to options on futures?
A) options on futures are also known as futures options
B) options on futures are also known as options on the underlying instrument
C) options on futures is a derivative on a derivative
D) options on futures are also known as commodity options
E) all of the above statements are true related to options on futures

Question

Quizplus · Accepted Answer

Options on futures are not known as options on the underlying instrument. Options on the underlying instrument refer to options on stocks or other securities, whereas options on futures are specific to commodities or financial futures contracts. The other statements are true related to options on futures.

Which of the Following Is a False Statement Related to Options