Which of the following statements is true about the use of futures contracts?

a.

Futures may amplify or reduce the risk of a portfolio, depending on the position taken.

b.

Futures do not impact the risk of a portfolio as they are derivative instruments.

c.

Futures always amplify the risk of a portfolio due to the ability of trade on margin.

d.

Futures always reduce the risk of a portfolio as the accounts are settled daily.