When a Futures Call Option on a Commodity Is Exercised

Multiple Choice

When a futures call option on a commodity is exercised the option owner receives a futures contract on the commodity plus a cash payment equal to the difference between the:

A) current options price and the current futures price.
B) spot and forward futures prices.
C) strike price on the option and the current futures price.
D) exercise price and the current options price.
E) exercise price and the strike price.