The Main Advantage of Using Options on Futures Contracts Rather

question 88

Multiple Choice

The main advantage of using options on futures contracts rather than the futures contracts themselves is that interest-rate risk is

• A) controlled while preserving the possibility of gains.
• B) controlled while removing the possibility of losses.
• C) not controlled but the possibility of gains is preserved.
• D) not controlled but the possibility of gains is lost.

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Definitions:

Future Organization

The conceptualization or design of organizational structures, cultures, and practices for adapting to expected future challenges and opportunities.

Organization Design

The process of structuring and arranging the components of a company or organization to achieve its objectives efficiently and effectively.

Traditional Forms

Conventional or long-established methods, practices, or art forms that are passed down through generations.

Evolution Circumstances

Factors or conditions that influence the adaptive changes and development of organisms, systems, or processes over time.