Because Futures Are Highly Leveraged and Transactions Costs Are Less

question 14

True/False

Because futures are highly leveraged and transactions costs are less than in the cash market, market participants can alter their risk exposure to a market (stock or bond) less efficiently in the futures market.

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Definitions:

Dura Mater

The outermost, tough layer of the meninges that envelops the brain and spinal cord, providing protection.

Meninx

Meninx (plural, meninges) refers to one of the three membranes (the dura mater, arachnoid mater, and pia mater) that cover the brain and spinal cord.

Periosteum

The periosteum is a dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints, serving as a site for attachment for muscles and bones.

Nervous System

A complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.