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danby danby
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1 months ago
One of the biggest differences between a futures option and a futures contract is that

▸ the option limits the loss exposure to the price of the option.

▸ the futures contract limits the loss exposure to the price of the contract.

▸ an option can be traded on the secondary market, whereas a futures contract cannot.

▸ a futures contract can be traded on the secondary market, whereas an option cannot.
Textbook 

Fundamentals of Investing


Edition: 14th
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oldgreyvlegsoldgreyvlegs
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1 months ago
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More questions for this book are available here
the option limits the loss exposure to the price of the option.

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