What Is the Advantage of a Futures Hedge Over an Options

Multiple Choice

What is the advantage of a futures hedge over an options hedge?

A) The futures hedge has lower credit risk exposure.
B) The futures hedge reduces volatility in profit gains on both sides.
C) The futures hedge is marked to market less frequently.
D) The futures hedge offers the least downside risk protection.
E) The futures hedge completely offsets losses but only partly offsets gains.