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Question 7: 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

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Question 7: 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

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