Which of the Following Is an Advantage of Trading Financial

question 69

Multiple Choice

Which of the following is an advantage of trading financial futures to hedge interest-rate risk?

• A)Only a fraction of the value of the contract must be pledged as collateral
• B)Brokers' commissions are relatively low
• C)There is no market risk in trading futures contracts
• D)All of the options are correct
• E)Only a fraction of the value of the contract must be pledged as collateral and brokers' commissions are relatively low