Which One of the Following Statements Is Correct

question 32

Multiple Choice

Which one of the following statements is correct?

• A) An option seller makes more profits than an option buyer.
• B) A futures seller makes more profits than a futures buyer.
• C) The profit realized by the buyer of futures will be equal to the loss incurred by the seller.
• D) Both the buyer and the seller of a futures contract can earn a profit.

---

Definitions:

Litigation

The process of taking legal action; a lawsuit or legal proceedings in a court.

Reference Checks

Reference Checks are the process of contacting previous employers, colleagues, or other references provided by a candidate to verify their qualifications and suitability for a job.

Organizations

Groups or entities that are structured and managed to meet a particular purpose or set of goals, including companies, government agencies, and non-profits.

Successful Selection System

A reliable and valid process employed by organizations to identify candidates most likely to perform well in a job.