Options Contracts Contrast with Futures Because

question 30

Multiple Choice

Options contracts contrast with futures because

• A) options are not traded on organized exchanges.
• B) options do create an obligation for the owner of the instrument.
• C) options are derivatives.
• D) None of these.

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Definitions:

Joint Tenancy

A form of property ownership in which two or more parties own a property together, with rights of survivorship.

Community Property

A type of shared asset ownership usually among married couples, in which properties obtained while married are equally held by each partner.

Tenancy In Common

A form of co-ownership where each tenant holds an undivided interest in the property, with no right of survivorship.

Tenancy By The Entirety

A form of joint property ownership that is available only to married couples, where each owns the entire property and neither can dispose of it without the consent of the other.