One Distinguishing Difference Between the Buyer of a Futures Contract

question 90

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 up-front price than option buyers.
• B) has an obligation to purchase, not a choice.
• C) can lose no more than the initial outlay.
• D) has increased rather than reduced risk.

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Definitions:

Social Skills Training

A form of behavior therapy used to improve interpersonal skills through modeling, role-playing, and reinforcement techniques.

Behavioural Therapist

A professional who employs principles of behaviorism to treat psychological disorders and modify problematic behaviors through techniques such as conditioning.

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Methods or approaches that avoid violence or hostility in dealing with others or resolving conflicts.

Maladaptive Beliefs

Irrational or dysfunctional thought patterns that negatively influence behavior and well-being.