Which of the following statements is correct?
A) An option seller makes more profits than an option buyer.
B) A futures seller makes more profits than a futures buyer.
C) A futures buyer's profit will be equal to the futures seller's loss.
D) Both futures buyer and seller makes profit.

Question

Quizplus · Accepted Answer

In futures trading, both buyer and seller can make profits, but the statement that the futures buyer's profit will be equal to the futures seller's loss is true. This is because in futures trading, the profit of one party is the loss of the other party. Therefore, the profit of the buyer equals the loss of the seller, and vice versa. Option selling and buying also have their own advantages and disadvantages, and one cannot be said to always make more profits than the other.

Which of the Following Statements Is Correct