The main disadvantage of hedging with futures contracts as compared to options on futures contractsis that futures

Related MCQs

• The main advantage of using options on futures contractsrather than the futures contracts themselvesis that
• Futures contracts are more successful than interest rate forward contracts because they :
• Options on futures contracts are referred to as
• The main reason to buy an option on a futures contract rather than the futures contract is
• The hedging strategy which results in exact offsetting of gains and losses in the futures market and physical market is known as
• If the maturity of futures contract mismatchesfuture hedging is known as
• Futures markets have grown rapidly because futures
• The total number of futures/option contracts outstanding at the close of the previous day’s trading is
• Standardized futures contracts exist for all of the following underlying assets except:
• Which of the following does the most to reduce default risk for futures contracts?