On average, premiums paid for futures contracts are greater than for options contracts.

Question

Quizplus · Accepted Answer

Futures contracts do not involve premiums in the way options contracts do. When buying options, the buyer pays a premium for the right, but not the obligation, to execute the contract. Futures contracts, instead, involve agreements to buy or sell an asset at a future date without upfront premiums, though they may require margin deposits.

On Average, Premiums Paid for Futures Contracts Are Greater Than