Which of the Following Are Advantages of Using Options for Futures

question 48

Multiple Choice

Which of the following are advantages of using options for futures speculation?
I.increased leverage
II.potential losses are limited to the cost of the option
III.options are available on a broad range of commodity, index, and currency futures
IV.investors avoid the possibility of having to take delivery of the commodity.

• A) I and II only
• B) II and III only
• C) I, II and IV only
• D) I, II, III and IV

Interpret demographic trends and their implications for global poverty and inequality.

Understand the implications of economic strategies and policies on global poverty alleviation.

Explore the conceptual frameworks of modernization and dependency as explanations for economic disparities among nations.

Understand the developmental effects of environmental factors on children.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.

Useful Life

The expected period over which an asset is estimated to be economically usable by one or more users, often influencing depreciation calculations.

Simple Rate Of Return

A method to evaluate the profitability of an investment, calculated by dividing the incremental annual income by the initial investment cost.

Sales Revenues

The income generated from the sale of goods or services before any costs or expenses are deducted.