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Question

Which of the following statement/s is/are not correct about derivative instruments?

i. For both Futures and Options, price is zero but strike price moves

ii. Futures and Options both are exchange traded

iii. In Futures both long and short at risk while in Options only short at risk

A Only i Correct Answer Incorrect Answer
B Only ii Correct Answer Incorrect Answer
C Only iii Correct Answer Incorrect Answer
D Only ii and iii Correct Answer Incorrect Answer
E All the above are correct Correct Answer Incorrect Answer

Solution

For Futures - Price is zero, strike price moves For Options - Strike price is fixed, price moves

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