The Main Disadvantage of Futures Contracts as Compared to Options

question 113

Multiple Choice

The main disadvantage of futures contracts as compared to options on futures contracts is that futures

• A) remove the possibility of gains.
• B) increase the transactions cost.
• C) are not as effective a hedge.
• D) do not remove the possibility of losses.

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Definitions:

Grievances

Complaints or concerns raised by employees regarding workplace conditions, policies, or treatment that they believe to be unfair.

Collective Bargaining

A process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Unionization

The process of forming or joining a labor union, where workers unite to collectively negotiate with employers regarding workplace issues.

Grievance Procedure

A formal process through which employees can report complaints or concerns about the workplace, typically involving a series of steps for resolution.