The Decision Between Selecting a Future or an Option

Multiple Choice

The decision between selecting a future or an option:

A) reflects a trade-off between the higher cost of using options and the extra insurance benefits that options provide.
B) reflects the greater risk of using options and the extra insurance benefits that options provide.
C) reflects a trade-off between the higher cost of using futures and the extra insurance benefits that futures provide.
D) depends on whether the underlying instrument is an equity or debt instrument.