The Primary Difference Between Options and Futures Is That

question 11

Multiple Choice

The primary difference between options and futures is that:

• A)the option premium is the full liability of the purchaser, while a futures contract may call for additional margin to hold the position.
• B)options are more speculative than futures.
• C)futures require the physical transfer of goods, while options do not.
• D)More than one of the above

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Definitions:

Adult Americans

Adult Americans refer to individuals within the United States who are legally recognized as adults, typically 18 years of age or older.

Tax Liability

The total amount of taxes owed by an individual, corporation, or other entity to a taxing authority such as the government.

Government Size

The extent of involvement and intervention of the government in a country, typically measured by public expenditure as a percentage of GDP.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, generally measured by GDP.