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From the Corporate Financial Manager's Perspective,the Most Important Difference Between

Question 15

Multiple Choice

From the corporate financial manager's perspective,the most important difference between a futures option and a futures contract is that


A) the option limits the loss exposure to the option premium
B) commissions on options are lower as a percent of the cash market position being hedged
C) options have no expiration date
D) options are much riskier to use because their daily price changes may be so large

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