Put-call parity exists when: Select one:

a. call and put options on the same stock, for the same strike price and the same expiry date, have the same price. b. the price of the underlying stock is less than the exercise price of the put option, but greater than the exercise price of the call option c. the price of the underlying stock is greater than the exercise price of the put option, but less than the exercise price of the call option d. none of the above.

Which of the following statements is true? Select one:

a. Basis equals spot price minus futures price.

b. Futures contracts are usually closed out at maturity although they are settled daily through marking to market, because the futures price is based on final delivery.

c. While the bank bill contract is used for operations involving short-term interest rates, the 10-year Treasury bond contract can be used for both short-term and long-term interest rates.

d. Statements B and C.