Which of the following statements about derivatives is correct?
A) Both futures and options represent zero-sum games.
B) Futures represent a zero-sum game, but options do not.
C) Options represent a zero-sum game, but futures do not.
D) Neither options nor futures represent a zero-sum game.

Question

Quizplus · Accepted Answer

Both futures and options are considered zero-sum games because the gain of one party is exactly balanced by the loss of another party in these contracts.

Which of the Following Statements About Derivatives Is Correct