Options on Futures Contracts Are Very Popular Because

question 53

Multiple Choice

Options on futures contracts are very popular because

• A) they require the holder to purchase at a future date.
• B) of their ability to create leverage.
• C) the seller of the futures contract is under no obligation.
• D) the amount of the underlying commodity is negotiable.
• E) None of these are correct.

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Definitions:

Estimate

A rough calculation or judgment of the value, number, quantity, or extent of something.

Mean Difference

The average difference between two sets of data, often used to compare the mean values of two samples or measurements.

Matched Pairs

A study design in which each subject is paired with a similar subject, usually to control for certain variables.

Independent Samples

Two or more groups of data that are not related or do not influence each other, often used in comparative experiments.