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:

I Band

A region within the sarcomere of skeletal and cardiac muscles identified by its light appearance under a microscope, consisting mainly of actin filaments.

Neuromuscular Junction

The synapse or junction where a motor neuron transmits a signal to a muscle fiber, causing it to contract.

Synaptic Vesicles

Small sacs in presynaptic neurons that store neurotransmitters, which are released into the synaptic cleft to transmit neural signals.

Synaptic Cleft

The small gap between neighboring neurons, across which neurotransmitters are released to transmit signals from one neuron to another.