What Is the Biggest Difference Between an Option and a Futures

question 26

Multiple Choice

What is the biggest difference between an option and a futures contract?

• A) Options are traded on exchanges whereas futures are not
• B) Options give investors a way to manage portfolio risk while futures do not
• C) Options can be used by speculators to profit from price fluctuations while futures cannot
• D) Options give their holders the right to buy or sell whereas futures contract are obligations to buy or sell

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Definitions:

Androgens

A group of hormones that play a role in male traits and reproductive activity; present in both males and females.

Estrogens

A group of hormones that play a critical role in the development and regulation of the female reproductive system and secondary sexual characteristics.

Testosterone

A primary male sex hormone that plays key roles in health and development, but is also found in females in smaller amounts.

Corpus Callosum

A large band of nerve fibers connecting the two hemispheres of the brain, facilitating communication and coordination between them.