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reproduced below. You: What is the best way to invest in the equity market now? Daniel: In my humble opinion, I think you should just

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reproduced below. You: What is the best way to invest in the equity market now? Daniel: In my humble opinion, I think you should just get the ASX index. You: You mean buying the market index? Daniel: No, no, no. The Winter is coming, the inflation is crazy, you should definitely sell the market index. You: Though the market index is not tradable. Daniel: I thought you were enrolled in Frank's derivative unit? Has he not told you that you could take a forward contract, a futures contract, or even options on the index to speculate? You: Wow - is that true? Daniel: Yes, it is. It is the same as going on the short position of a futures contract. Please discuss whether Daniel's statement on European call option, put option and futures contract is correct. Please provide reasons to justify your

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