Which of the Following Are Advantages of Using Options for Futures

question 63

Multiple Choice

Which of the following are advantages of using options for futures speculation?
I.increased leverage
II.Potential losses are limited to the cost of the option.
III.Options are available on a broad range of commodity, index, and currency futures.
IV.Investors avoid the possibility of having to take delivery of the commodity.

• A)I and II only
• B)II and III only
• C)I, II and IV only
• D)I, II, III and IV

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Definitions:

Individual Employee Earnings Record

An accounting document that summarizes the total amount of wages paid and the deductions for the calendar year. It aids in preparing governmental reports. A new record is prepared for each employee each year.

Payroll Register

A document that records the payment details of employees, including wages, deductions, and net pay for each pay period.

Payroll Register

A document that summarizes the earnings, deductions, and net pay of all employees for a specific payroll period.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used as a financial or accounting period.