One Distinguishing Difference Between the Buyer of a Futures Contract

question 70

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:

Mycobacteria

A genus of bacteria known for causing diseases like tuberculosis and leprosy in humans.

Wet Mount

A preparation of a specimen in a liquid that allows the organisms to remain alive and mobile while they are being identified.

Mordant

A substance, such as iodine, that can intensify or deepen the response a specimen has to a stain.

Parasite

An organism that lives on or in a host organism and gets its food from or at the expense of its host.