What Is the Advantage of an Options Hedge Over a Futures

question 118

Multiple Choice

What is the advantage of an options hedge over a futures hedge?

• A)The options hedge has lower credit risk exposure.
• B)The options hedge has lower transaction costs.
• C)The options hedge is marked to market less frequently.
• D)The options hedge offers the most downside risk protection.
• E)The options hedge offers the most upside gain potential.

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