The Main Advantage of Using Options on Futures Contracts Rather

question 24

Multiple Choice

The main advantage of using options on futures contracts rather than the futures contracts themselves is that ________.

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

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Definitions:

Endoplasmic Reticulum

A membrane-bound organelle in eukaryotic cells involved in protein and lipid synthesis, detoxification, and calcium storage.

Lysosomes

Lysosomes are membrane-bound organelles found in animal cells responsible for breaking down waste materials and cellular debris through enzymes.

Proteins

Proteins are large, complex molecules essential for the structure, function, and regulation of the body's tissues and organs, composed of chains of amino acids.

Schwann Cells

A type of glial cell in the peripheral nervous system that encircles nerve fibers, providing insulation (myelination) and enhancing signal transmission.