A Speculator Will Often Prefer to Buy a Futures Contract

Multiple Choice

A speculator will often prefer to buy a futures contract rather than the underlying asset because:
I. Gains in futures contracts can be larger due to leverage.
II. Transaction costs in futures are typically lower than those in spot markets.
III. Futures markets are often more liquid than the markets of the underlying commodities.

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III