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.  Which of the following statements is CORRECT? a. One advantage of forward cont...

.  Which of the following statements is CORRECT?

a.

One advantage of forward contracts is that they are default free.

b.

Futures contracts generally trade on an organized exchange and are marked to market daily.

c.

Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.

d.

Forward contracts are for commodities while future contracts are for financial securities.

Buying a call and a put with the same strike price is called a _______.

  1. Naked Option
  2. Protective Option
  3. Spread
  4. Straddle

A Protective Put would be if you ________ the stock and _________ a put.

  1. Buy, Buy
  2. Buy, Write
  3. Short, Write
  4. Short, Buy
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Answer #1

1.
Futures contracts generally trade on an organized exchange and are marked to market daily.

2.
Straddle

3.
Buy, Buy

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