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.
A
You might also like to view...
In recent decades, how has income distribution changed in the United States?
What will be an ideal response?
On July 1, Year 1, Village Bookstore, Inc. appropriated retained earnings in the amount of $36,000 for a future remodeling project in the basement of the bookstore. On June 30, Year 1, the balance of Retained Earnings was $82,800 and the Cash balance was $43,200. Which of the following answers shows the effect of the July 1 event on the elements of the financial statements?
A. Option A B. Option B C. Option C D. Option D
Developing a pool of concepts to serve as candidates for new products is the ________ stage of the new-product process.
A. product development B. screening and evaluation C. new-product strategy development D. open innovation E. idea generation
Debt management of the federal government includes:
a. determining which types of refunding to implement b. determining the types of securities to sell c. deciding which interest rate patterns to use d. all the above