Which of the following is NOT a reason that a trader might prefer a position in the

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Which of the following is NOT a reason that a trader might prefer a position in the futures market instead of a forward contract?

Options can allow investors to increase their potential profit with no effect on risk.

Options have a small outlay and allow for leverage.

Options allow traders to settle their positions easily and cost efficiently if exercised.

Option buyers limit their downside risk to the premium paid.

Related Book For answer-question

Applied Statistics in Business and Economics

ISBN: 978-0073521480

4th edition

Authors: David Doane, Lori Seward

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Posted Date: Feb 07, 2022 06:18 AM

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Which of the following is NOT a reason that a trader might prefer a position in the

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Answer The option C Options allow traders to settle their positions easily and cos... View the full answer

Applied Statistics in Business and Economics

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