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.
Correct Answer:
Verified
Q71: An increase in the volatility of the
Q72: A swap that involves the exchange of
Q73: A swap that involves the exchange of
Q74: If a bank manager wants to protect
Q75: All other things held constant,premiums on put
Q77: An increase in the exercise price,all other
Q78: A valid concern about financial derivatives is
Q79: The main reason to buy an option
Q80: If Second National Bank has more rate-sensitive
Q81: One problem with a futures contract is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents