One of the Biggest Differences Between a Futures Option and a Futures

question 34

Multiple Choice

One of the biggest differences between a futures option and a futures contract is that

• A) a futures contract can be traded on the secondary market, whereas an option cannot.
• B) the futures contract limits the loss exposure to the price of the contract.
• C) an option can be traded on the secondary market, whereas a futures contract cannot.
• D) the option limits the loss exposure to the price of the option.

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Definitions:

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A historical campaign against slavery and the slave trade, advocating for the emancipation of slaves and the end of racial discrimination and segregation.

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The legal right or interest that an individual has in a piece of land or a building.