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 represents a zero-sum game.

Question

Quizplus · Accepted Answer

Both futures and options represent zero-sum games, meaning that for every winner, there is a loser. In both cases, the gain of one party equals the loss of the other party. Therefore, option B, C, and D are incorrect.

Which of the Following Statements About Derivatives Is Correct