Multiple Choice
The main disadvantage of futures contracts as compared to options on futures contracts is that futures
A) remove the possibility of gains.
B) increase the transactions cost.
C) are not as effective a hedge.
D) do not remove the possibility of losses.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q107: If you buy an option to sell
Q108: The most widely traded stock index future
Q109: Define and distinguish between call options and
Q110: If a bank has a gap of
Q111: The biggest danger of financial derivatives occurs<br>A)
Q112: Options on individual stocks are referred to
Q114: The use of financial derivatives by financial
Q115: Which is not a problem of forward
Q116: Distinguish between forward and futures contracts.
Q117: A long contract obligates the holder to