One of the biggest differences between a futures option and a futures contract is that
A) a futures contract can be traded on the secondary market, whereas an option cannot.
B) the futures contract limits the loss exposure to the price of the contract.
C) an option can be traded on the secondary market, whereas a futures contract cannot.
D) the option limits the loss exposure to the price of the option.
Correct Answer:
Verified
Q2: The margin deposit associated with the purchase
Q3: The seller of a futures contract
A) must
Q4: Assume an investor thinks the share market
Q5: Hedging in the commodities market is a
Q6: The value of a futures option is
Q7: The amount paid at the time a
Q8: The basic reason why investors use spreading
Q9: You short sell contract A at 428
Q10: The purchaser of a futures contract
A) does
Q11: Midge feels that the price of gold
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