Question: Answer the following: a. What right does a September ($5.00) wheat futures call option contract give the holder? b. What right does a September ($5.00)

Answer the following:

a. What right does a September $\$5.00$ wheat futures call option contract give the holder?

b. What right does a September $\$5.00$ wheat futures put option contract give the holder?

c. What conditions are necessary to make the spot options and futures options equivalent?

d. True or false: If the futures option contract and the underlying futures contract expire at the same time, then the futures options can be viewed as an option on the underlying spot security with the option having a cash settlement clause.

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