Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A)An option seller makes more profits than an option buyer.
• B)A futures seller makes more profits than a futures buyer.
• C)A futures buyer's profit will be equal to the futures seller's loss.
• D)Both futures buyer and seller make profit.

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Definitions:

Sales Revenue

A company's total income from product sales or service charges prior to the deduction of any operational expenses.

Gross Profit Rate

A profitability ratio that compares gross profit to net sales, reflecting the efficiency of a company in managing its production and labor costs.

Multiple-Step Income Statement

An income statement that separates operating revenues and expenses from non-operating items to display key components of net income.

Sales Revenue

The gross income from selling products or services, prior to deducting any costs.