One Difference Between Futures and Options Contracts Is

question 38

Multiple Choice

One difference between futures and options contracts is

• A)funds change hands daily in the case of options but not with futures.
• B)funds change hands daily in the case of futures, but not with options.
• C)in the case of futures funds only change hands when they are exercised.
• D)futures are designed to reduce risk while options are not.

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Definitions:

Psychological Dependence

A condition characterized by a perceived need to continue using a substance due to emotional or mental attachment rather than physical dependence.

Delta Waves

A type of high amplitude brain wave found in humans, typically associated with deep non-REM sleep.

EEG Recordings

Graphical recordings of the electrical activity of the brain obtained through electrodes placed on the scalp, used in neurological diagnosis and research.

Biological Cycles

Natural rhythms in living organisms, such as circadian rhythms, that regulate physiological processes.