The main reason to buy an option on a futures contract rather than the futures contract itself is

A) to reduce transaction cost.
B) to preserve the possibility for gains.
C) to limit losses.
D) to remove the possibility for gains.


B

Business

You might also like to view...

A contractor would be liable for ________ if the demolition of a structure with dynamite caused damages to surrounding structures

A)strict liability B)contributory negligence C)criminal wrongdoing D)tortious interference

Business

If you sell a futures contract on the S&P 500 Index at a price of 450 and the index rises to 500, you will ________

A) lose $12,500 B) gain $12,500 C) lose $50 D) gain $50

Business

A__________matches capacity additions with demand as closely as possible

A) capacity lag strategy B) capacity straddle strategy C) capacity lead strategy D) capacity reduction strategy

Business

You should put your cell phone on silent or vibrate before going into a meeting

Indicate whether the statement is true or false

Business