Case 2 From Real Estate to Options and Futures Brandon Williams and Jason Richardson, longtime partners in Storm Lake, Iowa, have bought and sold real estate properties for ten years. They have profi ted on many transactions although they had some substantial losses last year. Their portfolio of real estate is worth about $4.7 million, on which they owe $2.9 million. Jason has read about investing in options and futures contracts, and last week he talked with a stockbroker about the possibilities.

(a) Off er some reasons why Jason might gain by investing

$100,000 or $200,000 in options and futures contracts.