Comparing an Option to a Futures Contract It Would Be

question 109

Multiple Choice

Comparing an option to a futures contract it would be correct to say:

• A) the risk involved in each is equal.
• B) a futures contract carries more risk than the option contract.
• C) an option contract carries more risk than the futures contract.
• D) neither involves risk; they are tools to eliminate risk.

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Definitions:

Social Interaction

The process by which individuals act and react in relation to others, shaping society through their collective and individual behaviors.

Control Group

In experimental research, it is the group that does not receive the treatment or intervention, serving as a baseline to compare against the experimental group.

Dimly Lit Room

A room that is lightly illuminated, often creating a subdued or intimate atmosphere.

Experimental Group

In an experiment, the group of participants that receives the treatment or intervention under investigation, as opposed to the control group.