The Primary Difference Between Options and Futures Is That

question 11

Multiple Choice

The primary difference between options and futures is that:

• A)the option premium is the full liability of the purchaser, while a futures contract may call for additional margin to hold the position.
• B)options are more speculative than futures.
• C)futures require the physical transfer of goods, while options do not.
• D)More than one of the above

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Definitions:

Specificity Theory

A theory suggesting that specific receptors in the body are responsible for specific sensations like pain.

Sensory Qualities

Sensory Qualities pertain to characteristics of objects or experiences as perceived by the senses, including taste, smell, touch, sight, and hearing.

Neurons

Nerve cells that are the basic building blocks of the nervous system, responsible for receiving sensory input from the external world, processing and transmitting information through electrical and chemical signals.

Signal Detection

Signal detection is a technique used to identify the presence of a stimulus or signal in the midst of noise, emphasizing the ability to differentiate between information-bearing patterns and random patterns.