“There’s no real difference between options and futures. Both are tools for controlling risk, and both are derivative products. It’s just that with options you have to pay an option price, while futures require no upfront payment except for a good-faith margin. I can’t understand why anyone would use options.” Do you agree with this statement?
Question 14.16: “There’s no real difference between options and futures. Bot...
Disagree. In the case of an option, the buyer of the option has a choice whether to exercise the option. In the case of futures, the buyer is committed to a transaction unless an offsetting transaction is made.
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