The main reason to buy an option on a futures contract rather than the futures contract is

Related MCQs

• The main disadvantage of hedging with futures contracts as compared to options on futures contractsis that futures
• The main advantage of using options on futures contractsrather than the futures contracts themselvesis that
• Futures markets have grown rapidly because futures
• The option contract which gives the buyer the right to buy the underlying asset is
• The option contract which gives the seller the obligation to buy is
• The total number of futures/option contracts outstanding at the close of the previous day’s trading is
• Option strategy with combination of selling one put option at low strike price and buying put option at a high strike price
• If the maturity of futures contract mismatchesfuture hedging is known as
• If you sold a short contract on financial futures you hope interest rates
• Futures contracts are more successful than interest rate forward contracts because they :