CISI Introduction to Investment Practice Test
CISI IoI Derivatives and Alternative Investments
What is the key difference between a futures contract and an options contract?
Select your answer
A
Futures are traded on exchanges while options are only traded over-the-counter
B
A futures contract obliges both parties to transact, whereas an option gives the holder the right but not the obligation
C
Options are always more expensive than futures
D
Futures can only be used for commodities while options are used for equities
Hint
