1. ‘‘The price of an at-the-money European call futures option always equals the price of a similar at-the-money European put futures option.'' Explain why this statement is true.
2. Suppose that a futures price is currently 30. The risk-free interest rate is 5% per annum. A three-month American call futures option with a strike price of 28 is worth 4. Calculate bounds for the price of a three-month American put futures option with a strike price of 28.