Which of the following statements is/are correct for a put option? All else equal, the option price decreases in the stock's expected return. All else equal, the option price increases in the stock's expected return. All else equal, the option price decreases in the risk-free interest rate. All else equal, the option price is not related to the expected return of the underlying asset, according to the Black-Scholes-Merton's model. Typically in-the-money options are less liquid than out-of-the-money options. Because of higher counterparty risk, margin requirements are higher for short option positions than for long option positions. Profits and losses from options are marked to market daily. Plain vanilla options are typically traded in exchanges while exotic options are typically traded over-the-counter. Which of the following statements is/are true about futures? The profits and losses in the futures market are only marked-to-market daily on trading days. When you enter into a long position in a futures contract, you have to immediately pay the futures price. The difference between the prices of a gasoline futures contract and a crude oil futures contract with the same maturity date exceeds its historical maximum, so there is an arbitrage opportunity. In the futures market, transactions are typically cleared bilaterally between counterparties