Which of the Following Is Not a Difference Between Purchasing

question 17

Multiple Choice

Which of the following is not a difference between purchasing an option and purchasing a futures contract?

• A) The option requires that a premium be paid in addition to the price of the financial instrument.
• B) Owners of options can choose to let the option expire on the so-called expiration date without exercising it.
• C) The fulfillment of futures contracts is regulated by exchanges, while the fulfillment of options is not.
• D) All of the above are differences between purchasing an option and purchasing a futures

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Definitions:

Industrial Capitalism

An economic and social system in which trade, industry, and capital are privately controlled and operated for profit.

Fossil-fuel

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms and used primarily for energy.

Industrial Order

A social and economic system characterized by the large-scale industrial production and management of goods and services, often associated with the rise of factories and mechanization.

Factory System

A method of manufacturing using machinery and division of labor, known for its role in the Industrial Revolution by significantly increasing production capabilities and changing societal structures.