Which of the Following Are Advantages of Using Options for Futures

question 73

Multiple Choice

Which of the following are advantages of using options for futures speculation?
I. increased leverage
II. Potential losses are limited to the cost of the option.
III. Options are available on a broad range of commodity, index, and currency futures.
IV. Investors must always take delivery of the commodity.

• A) I and II only
• B) II and III only
• C) I, II and IV only
• D) I, II, and III only

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