Which of the following features are shared by futures contracts and options?
I. They have specified expiration dates.
II. Their value is derived from changes in the value of some other asset
III. unprofitable futures or options can simply be allowed expire unexercised.
IV. futures and options specify a specific price at which the underlying asset can be bought or sold.
A) I and III only
B) I and IV only
C) II and III only
D) I, and II only

Question

Quizplus · Accepted Answer

Both futures and options have specified expiration dates and their value is derived from changes in the value of an underlying asset. However, only options can be allowed to expire unexercised without further obligation, not futures.

Which of the Following Features Are Shared by Futures Contracts