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 make profit.

Question

Quizplus · Accepted Answer

In futures trading, the profit of a buyer will be equal to the loss of the seller and vice versa. Therefore, option and futures trading do not have a fixed rule that says a seller will always make more profits than a buyer. However, in both option and futures trading, there can be situations where either the buyer or the seller makes more profits depending on market conditions and the strategy used.

Which of the Following Statements Is Correct