One of the biggest differences between a futures option and a futures contract is that:_______

1 answer:

6 0

The biggest difference between options and futures exists that futures contracts need that the transaction specified by the contract must take place on the date specified. Options, on the other hand, provide the buyer of the contract the right — but not the obligation — to execute the transaction.

<h3>What is the difference between futures contract and options?</h3>

A futures contract is put into effect on the specified date. The buyer buys the underlying asset on this date. In the meantime, the buyer of an options contract is free to execute the agreement at any point before the expiration date.

You may therefore purchase the asset anytime you believe the circumstances are favorable. A futures contract gives the holder the option to purchase or sell a certain item at a predetermined price on a predetermined future date. Options allow the option to purchase or sell a certain asset at a specific price on a specific date, but not the obligation to do so.

Hence, The biggest difference between options and futures exists that futures contracts need that the transaction specified by the contract must take place on the date specified. Options, on the other hand, provide the buyer of the contract the right — but not the obligation — to execute the transaction.

To learn more about futures contract refer to:

brainly.com/question/1193397

#SPJ4

You might be interested in

How did the Atlantic revolutions influence subsequent movements that spread throughout Europe in the nineteenth century? All wer

Kruka [31]

Answer:

Option A

All were focused on republicanism and social uniformity.

Explanation:

They spread broadly the goals of progressivism, republicanism, the topple of nobilities, lords and built up temples.

They stressed the widespread standards of the Enlightenment, for example, the uniformity everything being equal, including equivalent equity under law by uninvolved courts rather than specific equity passed on at the impulse of a neighborhood honorable.

They demonstrated that the cutting edge thought of insurgency, of beginning crisp with a profoundly new government, could really work by and by. Progressive mindsets were conceived and keep on thriving to the present day

5 0

3 years ago

What was the problem with the way Great Britain and France drew borders in the Middle East?

abruzzese [7]

<u>Answer: </u>

The problem with the way Great Britain and France drew borders in the Middle East was that the borders were drawn to serve the interests of the British and the French and not the local conditions.

<u>Explanation: </u>

The British Council had given the authority of drawing borders in the Middle East to one of their efficient administrative leaders named Mark Sykes.
The French had given the same to George Picot who was himself a renowned statesman.
These two authorized persons marked the boundaries of the Middle East without taking into consideration any opinions of the locals.

3 0

3 years ago

"according to some research, the degree" of ________ prejudice has declined, but the degree of ________ prejudice keeps it alive

natima [27]

<span>"according to some research, the degree" of implicit prejudice has declined, but the degree of explicit </span><span>prejudice keeps it alive under the surface.
</span>

Implicit and explicit are two opposite words, the meaning of implicit is, "inferred or saw however not doubtlessly or straightforwardly communicated." whereas explicit means "to completely and unmistakably express something, leaving nothing suggested."

5 0

3 years ago

Draw a bar graph to present your data on violation of human rights

joja [24]

Answer:there is only a responsible person of this Nd those are our political leaders

Explanation: i hope this help

8 0

3 years ago

The first of piaget's developmental stages is the _____ stage. preoperational sensorimotor concrete operational formal operation

Contact [7]

In the following stages above, the first stage of piaget's developmental stages is the sensorimotor period. It is because this is the first stage that a child acquires as the child begins to develop and to start to develop things related to the sensorimotor period.

6 0

3 years ago