Question: Theres no real difference between options and futures. Both are hedging tools, and both are derivative products. Its just that with options you have to

“There’s no real difference between options and futures. Both are hedging tools, and both are derivative products. It’s just that with options you have to pay an option premium, whereas futures require no upfront payment except for a ‘good faith’ margin. I can’t understand why anyone would use options.” Do you agree with this statement?

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One would not agree with the statement because an option unlike a futures does not lose substantial ... View full answer

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