A Contract for Difference Is

question 2

Multiple Choice

A contract for difference is:

• A) the difference between a put and a call option on the same security.
• B) the difference between an option and a warrant on the same security.
• C) the difference between a physical stock market and the futures market.
• D) an agreement to exchange the difference between a contract start and close values.

---

Definitions:

Defense Mechanism

Unconscious psychological strategies used by individuals to cope with reality and maintain self-image.

Reaction Formation

A defense mechanism in which unacceptable thoughts or desires are expressed as their opposites, often to hide one's true feelings.

Great Admiration

A feeling of profound respect and deep appreciation for someone or something's qualities or achievements.

Homosexual Desires

Sexual attraction or desire between members of the same sex.