A Speculator May Choose to Buy a Call Option Because

Multiple Choice

A speculator may choose to buy a call option because

A) the possible gain is greater than with a futures contract.
B) the potential loss on the call is limited to the premium, while the potential loss is unlimited with a futures contract.
C) the possible gain with the option is great than the possible gain from buying the underlying stock itself.
D) calls eliminate the risk of loss so a speculator can lose nothing or just make a gain.