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.

---

Definitions:

Cardiology

A branch of medicine dealing with disorders of the heart and blood vessels.

Ultrasonography

Ultrasonography is a diagnostic imaging technique that uses high-frequency sound waves to create visual images of organs, tissues, or blood flow inside the body.

Blood Vessels

The network of tubes in the body through which blood flows, including arteries, veins, and capillaries.

Thyroid

A gland located in the neck that produces hormones regulating metabolism, energy generation, and growth.