In the derivatives markets, transactions costs are highest for
A)options.
B)futures.
C)forwards.
D)swaps.
E)currencies.

Question

Quizplus · Accepted Answer

Options have the highest transaction costs in the derivatives markets due to their complexity and customization. Each option contract has unique strike prices and expiration dates, which require individual pricing and trading. Additionally, options involve a premium payment, which adds to the overall transaction cost.

In the Derivatives Markets, Transactions Costs Are Highest for