Options contracts Multiple Choice Question Which type of contracts may be used to hedge volatility in commodity prices, exchange rates, and interest rates? Multiple choice question. Warranty Insurance Options Reverse-split differ from forward contracts because with a forward contract, _____. Multiple select question. the outcome is a zero sum game, but with an options contract, both parties to the contract stand to gain both parties are obligated to transact, but with an option, the transaction occurs only if the owner of the option exercises it neither party is obligated to transact, but with an option, both parties are obliged to transact no money changes hands when it is created, but with an option, the buyer pays the seller the option premium to gain the right to exercise the option