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The buyer of an option: A) compared to the purchaser of a futures contract has a greater insurance benefit. B)as they are locked in to
The buyer of an option:
A) compared to the purchaser of a futures contract has a greater insurance benefit.
B)as they are locked in to buying at expiration is purchasing a very risky instrument if they don't own the underlying asset
C)generally incurs a lower cost than the purchaser of a futures contract.
D)carries the risk of unfavourable price movements.
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