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:

Z Scores

Scores that are normalized to show the number of standard deviations a data point is away from the distribution's average.

Standardized Scores

Ratings adjusted to a unified scale featuring a mean of zero and a variance of one.

Midterm Scores

Scores or grades obtained from examinations taken midway through an academic term or semester.

Standardized Scores

Scores that have been transformed to a common scale with a mean of zero and a standard deviation of one.