During the Nineteenth and Early Twentieth Century,futures Trading in the United

question 6

Multiple Choice

During the nineteenth and early twentieth century,futures trading in the United States steadily gained acceptance,while options trading stayed in the shady corners of the financial markets and was viewed with suspicion.Which of the following was NOT a reason for this development?

• A) Futures contracts had a history of being developed to help farmers and purchasers hedge price risk,while options trading had no such justification.
• B) Options were used for market manipulation.
• C) Option contracts traded in over-the-counter markets and had substantial legal risk.
• D) Option contracts were guaranteed by well-capitalized large traders.
• E) Option contracts were used for speculation in the United States.

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Definitions:

Family of Procreation

A family unit created by an individual, often through marriage and having children, distinguishing it from the family of origin.

Family of Orientation

Refers to the family into which a person is born and raised, including parents and siblings, influencing an individual's early socialization and values.

Social Reproduction

The process by which societal norms and inequalities are passed down from one generation to the next, maintaining the social structure.

Marxist

Pertaining to the theories and practices derived from the works of Karl Marx, focusing on the struggle between classes and the economic factors influencing society.