One Key Difference Between Options Contracts and Futures Contracts Is

question 4

Multiple Choice

One key difference between options contracts and futures contracts is:

• A) in a futures contract, one part has more rights than the other.
• B) with an options contract both parties have equal rights.
• C) in an options contract, the rights belong to one party.
• D) in a futures contract all rights are held by just one party.

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Definitions:

Compounded Annually

The calculation and addition of interest to the principal once a year.

Nominal Rate

The interest rate before adjustment for inflation, not reflecting the real cost of borrowing or the real return on an investment.

Compounded Monthly

The routine of accruing interest monthly, which incorporates calculating interest on the initial principal as well as on the interest that has previously been accrued.

Salary Increase

An increment in the amount of money earned by an employee on a regular basis, often annually or based on a performance review.