During the nineteenth and early twentieth century,futures trading in the United States steadily gained acceptance,while options trading stayed in the shady corners of the financial markets and was viewed with suspicion.Which of the following was NOT a reason for this development?
A) Futures contracts had a history of being developed to help farmers and purchasers hedge price risk,while options trading had no such justification.
B) Options were used for market manipulation.
C) Option contracts traded in over-the-counter markets and had substantial legal risk.
D) Option contracts were guaranteed by well-capitalized large traders.
E) Option contracts were used for speculation in the United States.
Correct Answer:
Verified
Q4: Many major developments took place in the
Q5: For computing position limits,the following positions are
Q6: Option contracts did NOT trade in:
A) seventeenth-century
Q7: Regular equity options that expire each month
Q8: Market manipulation cases involving options do NOT
Q10: The primary function of the Options Clearing
Q11: Regular equity options that expire each month
Q12: Which of the following is NOT true
Q13: Government actual usage of derivatives does NOT
Q14: Suppose the price of gold in the
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