In regards to pricing future, forward and options, which of the following is/are

true?

1. The Put/Call Parity relationshp assumes the stock price moves according to the

Geometric Brownian motion.

2. As storage cost of a commodity increase, the forward price for the commodity

will increase.

3. A forward contract will be marked-to-market on a daily basis, but not the

future.

A. Only 1

B. Only 2

C. 1 and 3

D. 2 and 3

E. None of the above