Trading in Stock Index Futures

question 42

Multiple Choice

Trading in stock index futures

• A) now exceeds buying and selling of shares in most markets.
• B) reduces transactions costs as compared to trading in stocks.
• C) increases leverage as compared to trading in stocks.
• D) generally results in faster execution than trading in stocks.
• E) all of these.

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Definitions:

Auto-Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident or theft.

Monitors Driving

The act of using monitoring devices or technology to track and improve driving behavior, typically for safety or efficiency purposes.

Moral Hazard

A situation in which one party is more likely to take risks because the negative consequences of the risk will be borne by another party.

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The process of obtaining a policy from an insurance company to protect against financial losses from specified risks, in exchange for a premium.