Which of the Following Statements Is Correct

question 45

Multiple Choice

Which of the following statements is correct?

• A)An option seller makes more profits than an option buyer.
• B)A futures seller makes more profits than a futures buyer.
• C)A futures buyer's profit will be equal to the futures seller's loss.
• D)Both futures buyer and seller make profit.

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Definitions:

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Relative Frequency

A measure indicating how often a certain value, event, or outcome occurs in relation to the total number of cases observed.

Diagnosis

The process of identifying the nature of an illness or other problem by examination of the symptoms.

Venn Diagrams

Graphical representations using circles to show the relationships and differences between various sets.