If the exercise price equals the futures price,a put on the futures will have the same price as a call on the futures.

Question

Quizplus · Accepted Answer

When the exercise price equals the futures price, the put option will have zero intrinsic value because the option holder can sell the futures contract in the open market for the same price as the exercise price. Therefore, the put option will only have time value, which is equal to the time value of a call option with the same strike price and expiration date. As a result, the put on the futures will have the same price as a call on the futures.

If the Exercise Price Equals the Futures Price,a Put on the Futures