In Comparing Futures Contracts with Options Contracts, We Can Say

question 47

Multiple Choice

In comparing futures contracts with options contracts, we can say that

• A)in a futures contract, the buyer and seller have symmetric rights, whereas in an options contract, the buyer and seller have asymmetric rights.
• B)in a futures contract, the buyer and seller have asymmetric rights, whereas in an options contract ,the buyer and seller have symmetric rights.
• C)in both futures and options contracts, the buyer and seller have symmetric rights.
• D)in both futures and options contracts, the buyer and seller have asymmetric rights.

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Definitions:

Optimal Solution

The best possible answer or strategy obtained from a selection of alternatives that maximizes or minimizes an objective function within given constraints.

Intuitive Method

A decision-making process that relies on the decision maker's instincts, feelings, or gut reactions rather than on systematic analysis.

Problem Solver

An individual or tool that identifies, analyzes, and resolves issues through logical analysis or creative thinking.

Information Needs

The specific data and insights required by individuals or organizations to make informed decisions or solve problems.