Which of the Following Statements About Forwards, Futures, and Options

question 38

Multiple Choice

Which of the following statements about forwards, futures, and options is correct?

• A)Forward contracts and futures contracts are economically similar, but vary greatly in how they are traded.
• B)Futures contracts and options contracts are economically similar, but vary greatly in how they are traded.
• C)Forward contracts and options contracts are economically similar, but vary greatly in how they are traded.
• D)Forward contracts, futures contracts, and options contracts are all economically similar, but vary greatly in how they are traded.

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Definitions:

Commit A Tort

The act of violating a duty or law, resulting in harm or injury to another, which can be redressed by a lawsuit for damages.

Commit A Crime

The act of engaging in an activity that is forbidden by law and punishable by the state or other authority.

Variance

In law, a variance is a granted deviation from the set rules of zoning or building regulations; in statistics, it measures the spread of a set of numbers.

Zoning Ordinance

A law that defines how property in specific geographic zones can be used, regulating building types, sizes, and uses.