Question

There are important differences between options and futures. Please select all true statements. Partial credit will...

  1. There are important differences between options and futures. Please select all true statements. Partial credit will be given.

    A.

    The owner of a call (put) option is obligated to buy (sell).
    B.

    When you buy (sell) an option contract, you pay (receive) the premium.
    C.

    When you buy (sell) a futures contract, you pay (receive) no money.
    D.

    The purchaser (seller) of a futures contract has the right to buy (sell).
    E.

    The owner of a call (put) option has the right to buy (sell).
    F.

    The purchaser (seller) of a futures contract is obligated to buy (sell).

3 points   

Math   Statistics-And-Probability   
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Homework Answers

Answer #1

ANSWER::

The true statements are..

ANS:: B , E & F

B.

When you buy (sell) an option contract, you pay (receive) the premium.
E.

The owner of a call (put) option has the right to buy (sell).
F.

The purchaser (seller) of a futures contract is obligated to buy (sell).

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