Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. same facts as above: what is a potential downside

Same facts as above: what is a potential downside of options? None of the options...

90.2K

Verified Solution

Question

Finance

Same facts as above: what is a potential downside of options?
None of the options given are correct.
Options contracts are executed on an over-the-counter basis, making them more prone to counterparty risks than futures contracts.
Options tend to be more expensive because option prices tend to reflect the payoffs associated with them.
Options do not have any disadvantages.
image

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

Biology
1.2K views

what would the gel electrophoresis look like if the reverse primer wasn't added to the PCR...

Operations Management
1.2K views

\"The Catalonian revolution affected negatively the tourism in Barcelona\" - State clearly how this influenced negatively Catalunya....

Basic Math
1.2K views

The accompanying data represent the miles per gallon of a random sample of cars with a?...

Biology
1.2K views

When the Klamath River dams were proposed in 1901 and thereafter the government made what...

Physics
1.2K views

Four electric charges q q qand q are placed at the corners of a square...

Basic Math
1.2K views

4 3 2 1 0 2 3 Number of Children How many adults were questioned...

Basic Math
1.2K views

A regression analysis between sales in 1000 and price in dollars resulted in the following...

Calculus
1.2K views

Find the limit L L Use the 8 8 definition to prove that the limit...

Calculus
1.2K views

Use the Table of Integrals to evaluate the integral sin 20 V 5 3 sin...

Accounting
1.2K views

Dooling Corporation reported balances in the following accounts for...

Accounting
1.2K views

1. Find a sample of expense classification by Nature and by Functions. 2. Differentiate the...

Accounting
1.2K views

What aspects of a collective agreement must meet minimum standards as set out in the...