One of the Biggest Differences Between a Futures Option and a Futures

question 58

Multiple Choice

One of the biggest differences between a futures option and a futures contract is that

• A) the option limits the loss exposure to the price of the option.
• B) the futures contract limits the loss exposure to the price of the contract.
• C) an option can be traded on the secondary market, whereas a futures contract cannot.
• D) a futures contract can be traded on the secondary market, whereas an option cannot.

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Definitions:

Chickenpox

A highly contagious viral infection causing an itchy rash of blister-like lesions, primarily affecting children.

Airborne Isolation

Precaution measures used in medical settings to prevent the spread of diseases that can be transmitted through the air.

Exanthema Subitum

A common viral infection in children, also known as roseola, characterized by high fever and a rash.

Erythema Infectiosum

A viral infection also known as fifth disease, characterized by a bright red rash on the cheeks.