Options Are More Useful Than Forwards and Futures Because Options

question 42

Multiple Choice

Options are more useful than forwards and futures because options:

• A)are traded in more markets.
• B)are obtained at a lower cost than forwards and futures.
• C)allow a party to elect not to go through with a transaction that will cause the party a loss.
• D)are easier to value than forwards and futures.

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Definitions:

Trustbusting

Government activities aimed at breaking up monopolies and trusts (large business entities) to foster competition and prevent market domination, prominently associated with the early 20th century.

Upton Sinclair

An American writer and social activist known for his novel "The Jungle," which exposed labor and sanitary conditions in the U.S. meatpacking industry, contributing to the passage of federal food safety laws.

The Jungle

A novel by Upton Sinclair published in 1906, exposing the harsh conditions and exploited lives of immigrants in the United States meatpacking industry.

Meat Inspection Act

A United States law passed in 1906 that made it a crime to adulterate or misbrand meat and meat products being sold as food, and ensured that meat and meat products were slaughtered and processed under sanitary conditions.