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

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Definitions:

Different Tracks

Courses or paths that are distinct from one another, often used in the context of education or music.

ANOVA Table

a table that summarizes the analysis of variance test results, used to determine if there are any statistically significant differences between the means of three or more independent groups.

F-ratio

A statistic used to compare the variance among group means in an analysis of variance (ANOVA) test.

P-value

A function of the observed sample results in a statistical hypothesis test, representing the probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.