Which of the Following Is Not a Difference Between Purchasing

question 77

Multiple Choice

Which of the following is not a difference between purchasing an option and purchasing a futures contract?

• A)The option requires that a premium be paid in addition to the price of the financial instrument.
• B)Owners of options can choose to let the option expire on the so-called expiration date without exercising it.
• C)The fulfillment of futures contracts is regulated by exchanges, while the fulfillment of options is not.
• D)All of the above are differences between purchasing an option and purchasing a futures contract.

---

Definitions:

Controlling

The management function aimed at ensuring goals are met through monitoring performance, comparing it with objectives, and taking corrective action as necessary.

Planning

The process of formulating detailed strategies and actions to achieve specific goals and objectives.

Measuring Work Performance

The process of assessing the efficiency and effectiveness of an employee's job performance.

Corrective Action

Steps taken to rectify a problem or defect to prevent recurrence and ensure improvement.