which of the following is a false regarding options and futures?

A. A long call option gives the holder the right to buy an asset at the strike price whereas a long futures position obligates the holder to buy the asset at a future price.

B. buying a put option is like buying insurance on an asset. If the asset price declines, the put holder can sell the asset at the strike price to defray any losses in the asset value.

C. A short call option exposes the seller to unlimited potential loss

D. In a short put option, the seller maximum loss on the strike price

E. Derivatives such as options and futures are risky securities and therefore rarely used for hedging purposes since hedging is designed to reduce risk.