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Briefly Discuss Futures Options

question 23

Essay

Briefly discuss futures options. What are they, and what advantage do they offer an investor?


Definitions:

Price

The financial cost of purchasing a product or service.

Apples

Commonly used as an example in economics, representing a tangible good that can be exchanged or consumed.

Bananas

A tropical fruit with a signature yellow peel and soft, sweet flesh, widely consumed around the world and rich in potassium.

Perfect Substitutes

Perfect substitutes are two goods that can be used in place of each other with no loss of utility or preference by consumers.

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