Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. one distinguishing difference between the buyer of

One distinguishing difference between the buyer of a futures contract and the buyer of an...

80.2K

Verified Solution

Question

Finance

One distinguishing difference between the buyer of a futures contract and the buyer of an option contract is that the futures buyer:

A) Pays a much higher premium than option buyers

B) Has an obligation to purchase, not a choice

C) Can lose no more than initial premium

D) Has increased rather than reduced risk

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

A project will generate annual cash flows of $237,600 for each of the next three years,...

Medical Sciences
1.2K views

When you swim you hold your breath to go under water. A) What is the effect...

Advance Math
1.2K views

Lesson 7 Explain the difference between population and a sample. Explain what an "unbiased sample" is. Explain the process for creating...

Physics
1.2K views

k 17 A submarine is 300 m horizontally out from the shore and 100 m...

Physics
1.2K views

The specific heat of a substance varia temperature is s 0 2 0 14 0...

Physics
1.2K views

A disc of Mass 'M' = 6kg and Radius R = 3m is lying on...

Geometry
1.2K views

Find an equation of the circle having the given center and radius Center 4 7...

Basic Math
1.2K views

A passbook savings account has a rate of 7%. Find the effective annual yield, rounded...

Calculus
1.2K views

Use the chain rule to find dz/dtz = xy^9 - x^2y, x = t^2 +...

Calculus
1.2K views

For the given function find f 23 f 60 f 31 and f 129 f...

Algebra
1.2K views

Let T: R R2 be the linear (matrix) transformation defined by: T(x1, x2) = (-7x1...

Accounting
1.2K views

Complete the following table, indicating the amount and direction of effect of each transaction on...