The Main Advantage of Using Options on Futures Contracts Rather

question 88

Multiple Choice

The main advantage of using options on futures contracts rather than the futures contracts themselves is that interest-rate risk is

• A) controlled while preserving the possibility of gains.
• B) controlled while removing the possibility of losses.
• C) not controlled but the possibility of gains is preserved.
• D) not controlled but the possibility of gains is lost.

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Definitions:

Middle Eastern Immigrants

Individuals who have migrated from Middle Eastern countries to different parts of the world, bringing their cultural, religious, and social traditions into the host societies.

Ethnic Enclaves

Geographically defined areas with high ethnic concentration, characterized by cultural distinction from the larger surrounding area.

Poverty Rates

Poverty rates indicate the percentage of the population living below the poverty line, a threshold which varies by country and is used to measure economic hardship.

Original Assimilation Model

A theory suggesting that immigrants would gradually lose their original cultural identities and fully blend into the host society.