Which of the following has provided a major

6. Which of the following has provided a major inducement for speculators to participate
in the futures market?
a) low margin requirements
b) low bid-ask spreads
c) high volume compared to the forward market
d) all of the above
7. Major advantages of futures contracts include the
8. The major disadvantage of forward and futures contracts relative to options is that the
forwards and futures contracts
9. Suppose the current spot rate for the euro is $1.3427. A call option with an exercise
price of $1.3550 is said to be
10. Suppose the current spot rate for the pound is $01.7427. A put option with an exercise
price of $01.7550 is said to be
a) in-the-money
b) out-of-the-money
c) at-the-money
d) past breakeven