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:

Mainstream U.S. Culture

The dominant set of norms, behaviors, beliefs, and values practiced and shared by the majority of people in the United States.

Death

The termination of all vital processes that support a living being, signifying the conclusion of its existence.

Dying

The process of approaching death or the cessation of life.

Personal Body Weight

An individual's mass or weight, which can affect health, self-perception, and social interactions.