A contract that results in the delivery of a futures contract when exercised is a
A)put option.
B)call option.
C)naked option.
D)futures option.

Question

A contract that results in the delivery of a futures contract when exercised is a
A)put option.
B)call option.
C)naked option.
D)futures option.

Quizplus · Accepted Answer

A futures option is a contract that gives the holder the right (but not the obligation) to buy or sell a futures contract at a specified price (the strike price) before the option's expiration date. When exercised, it results in the delivery of the underlying futures contract.

A Contract That Results in the Delivery of a Futures