If an Investor Wants to Acquire the Right to Buy

question 21

True/False

If an investor wants to acquire the right to buy or sell an asset, but not the obligation to do it, the best instrument is an option rather than a futures contract.

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Definitions:

Toxic Chemicals

Substances that can cause harm to humans, animals, or the environment.

Livestock Feedlot

A type of animal feeding operation which is used in modern agriculture to fatten livestock, particularly beef cattle, before slaughter.

Offshore Oil

Refers to the extraction of oil reserves located under the ocean floor, often involving complex and costly exploration and drilling techniques.