What is the underlying asset in a futures options contract?
A) a combination of an call and a put
B) a specific commodity
C) a specific common stock
D) a specific futures contract

Question

Quizplus · Accepted Answer

The underlying asset in a futures options contract is a specific futures contract. This means that the options are based on the future price of a commodity, currency, or other tradable instrument that is specified in the futures contract. By buying or selling a futures options contract, the buyer or seller is essentially buying or selling the right to buy or sell the underlying futures contract at a specific price and time in the future.

What Is the Underlying Asset in a Futures Options Contract