Which of the following is NOT among the differences between futures contracts an

Question

Which of the following is NOT among the differences between futures contracts and options contracts?

a. Futures give the obligation, while options give the right to buy or sell.

b. Futures require no premium, while options premium are required.

c. Options have the “Do not exercise” choice to get out of the contract, while futures do not.

d. You can take a short position by buying futures contracts or buying a put option.

e. All of the above are among the differences between Futures and Options contracts.

Explanation / Answer

The option is D ie., You can take a short position by buying futures or buying a put option.

reason: The short position means sell the futures hence the buying futures or buying a put option means long position hence this is not a difference between the futures and options.

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