Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mention three pros and cons for each of the follow

Mention three pros and cons for each of the following derivatives 1. futures 2. forwards 3. options

80.2K

Verified Solution

Question

Finance

Mention three pros and cons for each of the followingderivatives

1. futures

2. forwards

3. options

Answer & Explanation Solved by verified expert
4.2 Ratings (711 Votes)
1 Futures pros and cons are as follows Pros a These are traded on standardized markets or stock exchanges b Very low or negligible counterparty risk involved c Can be used to take large number positions on a stock at a single point of time since in futures we buy lots instead of buying a single quantity of stock Cons a Generally the capital required to invest in futures contract    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Mention three pros and cons for each of the followingderivatives1. futures2. forwards3. options

Other questions asked by students

Q

1 2 If the length of a base of right triangle and the hypotenuse of...

Geometry
Q

a steering wheel whose diameter is 2.44m has an angular velocity that decreases uniformly...

Physics
Q

United Rentals Corporation is authorized to issue 100,000 shares of 5%, $60 par value preferred stock...

Accounting
Q

Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows. Product Quantity Unit Cost Unit Replacement Cost Unit Selling Price A 800 $ 13 $ 15 $ 19 B 600 18 14 21 C 500 6 5 11 D 900 10 7 9 E 600 17 15 16 The...

Accounting
Q

hitte meld 1A b Attack rate 16 Zoonotic diseases are caused by microbes whose reservoirs...

Biology
Q

A wheel of mass 10 kg and radius 0 8 m is rolling on a...

Physics
Q

The heights h in inches of pistons 1 and 2 in an automobile engine can...

Geometry
Q

Hypothesis testing concepts For a test of Ho p 0 60 the test statistic is...

Statistics
Q

When Greg s father was in high school he ran the 55 yd race Greg...

Calculus
Q

The following transactions were selected from among those completed by Bear's Retail Store: November 20...

Accounting
Q

24) The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory...

Accounting
Q

Recently, crypto-currencies such as Bitcoin, Ethereum or Dogecoin have become an online phenomenon. They have...

Accounting