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.

---

Definitions:

Sociologists

Experts or scientists who study societies, examining the structures, systems, and dynamics of human interaction and social behavior.

Equilibrium Theory

The assertion that a system’s natural state is one of balance and harmony.

Social Change

The transformation over time of cultural norms, values, societal structures, and behaviors, often driven by conflict, innovation, and geopolitical shifts.

Crazes

Intense but short-lived fads or trends that capture a large following or great enthusiasm for a brief period.