One Distinguishing Difference Between the Buyer of a Futures Contract

question 29

Multiple Choice

One distinguishing difference between the buyer of a futures contract and the buyer of an option contract is that the futures buyer:

• A)Pays a much higher premium than option buyers
• B)Has an obligation to purchase, not a choice
• C)Can lose no more than the initial premium
• D)Has increased rather than reduced risk

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Definitions:

Acute Glomerulonephritis

A sudden onset of inflammation of the glomeruli, which are small structures in the kidneys that help filter waste and fluids from the blood.

Fluid Volume Excess

A condition characterized by an abnormal accumulation of fluid in the circulatory system or body tissues, often leading to swelling.

Acute Glomerulonephritis

A rapid onset inflammation of the glomeruli, the filtering units of the kidneys, which can affect kidney function.

Streptococcal Infection

An infection caused by any one of the many types of Streptococcus bacteria, often leading to throat infections, scarlet fever, or skin infections.