Comparing an Option to a Futures Contract It Would Be

question 14

Multiple Choice

Comparing an option to a futures contract it would be correct to say:

• A)The risk involved in each is equal.
• B)A futures contract carries more risk than the option contract.
• C)An option contract carries more risk than the futures contract.
• D)Neither involves risk; they are tools to eliminate risk.

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Definitions:

Interrater Reliability

The degree of agreement among raters, indicating how consistently they score an event or outcome.

Structured Questions

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The highest level of education an individual has completed.