The Main Advantage of Using Options on Futures Contracts Rather

question 24

Multiple Choice

The main advantage of using options on futures contracts rather than the futures contracts themselves is that ________.

• A) interest rate risk is controlled while preserving the possibility of gains
• B) interest rate risk is controlled, while removing the possibility of losses
• C) interest rate risk is not controlled, but the possibility of gains is preserved
• D) interest rate risk is not controlled, but the possibility of gains is lost

Evaluate the effect of transportation, customs, and exchange rates in international sourcing decisions.

Understand the criteria and tools for evaluating supplier performance.

Recognize the importance and characteristics of buyer-supplier relationships.

Identify the role and impact of strategic alliances and partnerships in supply chain management.

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Definitions:

Minority Groups

Social groups that are differentiated from the majority in a society through cultural, ethnic, racial, or religious characteristics.

Highly Cohesive

Highly cohesive describes a group or material that sticks together strongly, in social contexts referring to a group closely united in purpose or function.

Strategic Planning

The process of defining a direction for an organization by setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

External Threat

A danger or risk stemming from the environment outside of oneself or one's organization.