Which of the following are advantages of using options for futures speculation?
I.increased leverage
II.Potential losses are limited to the cost of the option.
III.Options are available on a broad range of commodity, index, and currency futures.
IV.Investors avoid the possibility of having to take delivery of the commodity.
A)I and II only
B)II and III only
C)I, II and IV only
D)I, II, III and IV

Question

Quizplus · Accepted Answer

Options for futures speculation offer increased leverage, limit potential losses to the cost of the option, are available on a wide range of futures, and help investors avoid taking delivery of the commodity.

Which of the Following Are Advantages of Using Options for Futures