Which of the Following Statements Best Describes the Relationship Between

question 81

Multiple Choice

Which of the following statements best describes the relationship between options and futures?

• A)Futures limit both gains and losses, while options limit losses without limiting gains.
• B)Options limit both gains and losses, while futures limit losses without limiting gains.
• C)Futures contracts may be purchased on options contracts, but options cannot be bought on futures contracts.
• D)Buyers of futures contracts must pay a futures premium, whereas buyers of options do not have to pay a premium.

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Definitions:

Norms

Shared expectations and rules that guide behavior of people within social groups, communities, or cultures.

Organizational Rules

Are the formal guidelines and regulations designed to structure, standardize, and regulate the behavior and decisions of members within an organization.

Groupthink

A psychological phenomenon where the desire for harmony and conformity within a group results in irrational or dysfunctional decision-making.

Fault Lines

Divisions or boundaries that emerge within groups or teams based on demographic, cultural, or organizational differences that can affect unity and performance.