Question

"The price of an at-the-moncy European futures call option always equals the price of a similar at-the-moncy European futures put option." Explain why this statement is true.

   "The price of an at-the-moncy European futures call option always equals the price of a similar at-the-moncy European futures put option." Explain why this statement is true.

Options, Futures, and Other Derivatives

Options, Futures, and Other Derivatives

John C. Hull 10th Edition

Chapter 18, Problem 17

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Step 1

An at-the-money option is one where the strike price is equal to the current price of the underlying asset. In this case, both the at-the-money call option and the at-the-money put option have the same strike price. Show more…

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"The price of an at-the-moncy European futures call option always equals the price of a similar at-the-moncy European futures put option." Explain why this statement is true.

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