Answer: bond component minus the futures component.

## Explanation In the Black model for European options on futures: **For a put option**: - Put price = Bond component - Futures component **For a call option**: - Call price = Futures component - Bond component Where: - **Futures component** = F × N(d₁) × e^(-rT) - **Bond component** = X × N(d₂) × e^(-rT) For a put option: P = X × e^(-rT) × N(-d₂) - F × e^(-rT) × N(-d₁) This can be rewritten as: P = [X × N(-d₂) × e^(-rT)] - [F × N(-d₁) × e^(-rT)] Which is: **Put price = Bond component - Futures component** Therefore, option C is correct.

Author: LeetQuiz Editorial Team