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.

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Definitions:

Impressions

The immediate thoughts or feelings that are elicited in a person upon encountering something or someone for the first time.

Perception

The process through which people receive, organize, and interpret information from the environment.

Self-serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.

False Confidence

An unfounded belief in one's abilities or outcomes, which can lead to taking undue risks or making poor decisions.