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One of the Biggest Differences Between a Futures Option and a Futures

Question 1

Multiple Choice

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:

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