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:

Sterile Workers

In social insects (like ants, bees, and termites), these are individuals that do not reproduce but work for the colony by performing tasks such as foraging, building, or defending.

Species

The fundamental category in taxonomy, referring to a group of closely related organisms that can interbreed and produce fertile offspring.

Honeybee

A flying insect known for its role in pollination and, in the case of the most well-known species, the European honey bee (Apis mellifera), for producing honey and beeswax.

Acoustical Communication

The transmission and reception of information through sound waves, used by various organisms, including humans, for interaction.