Multiple Choice
A deep in-the-money call option on futures is exercised early because
A) the intrinsic value is maximized
B) it behaves like a futures but ties up funds
C) the futures price is not likely to rise any further
D) all of the above
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q14: A synthetic put option on futures could
Q15: A futures contract can have negative value.
Q16: If the U.S.risk-free rate is 4 percent
Q17: The cost of carry futures pricing model
Q18: The cost of carry consists of all
Q20: Determine the value of a European foreign
Q21: Normal backwardation and contango are mutually exclusive
Q22: What is the lower bound of a
Q23: The futures price of a non-storable asset
Q24: If the exercise price equals the futures