24-41 In the derivatives markets,the highest transactions costs are highest for
A)options.
B)futures.
C)forwards.
D)swaps.
E)currencies.

Question

Quizplus · Accepted Answer

Options typically have higher transactions costs than other derivatives due to their complex nature and the need for precise pricing models. Additionally, options have higher bid-ask spreads, which can increase transactions costs for buyers and sellers.

24-41 in the Derivatives Markets,the Highest Transactions Costs Are Highest