One Difference Between Futures and Options Contracts Is

question 38

Multiple Choice

One difference between futures and options contracts is

• A)funds change hands daily in the case of options but not with futures.
• B)funds change hands daily in the case of futures, but not with options.
• C)in the case of futures funds only change hands when they are exercised.
• D)futures are designed to reduce risk while options are not.

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Definitions:

Parasympathetic Nervous System

Part of the automatic nervous system responsible for regulating the body's unconscious actions and helps to conserve energy and restore the body to a state of calm.

Role Ambiguity

The uncertainty and lack of clarity about the expectations, responsibilities, or execution of a particular role within an organization.

Decision-Making Ability

The capability to select between various options and make choices that lead to a desired outcome, often critical in personal and professional contexts.

Work Outcomes

The results or consequences generated from an individual's or a group's work efforts, which can be measured in terms of productivity, efficiency, and quality.