Cost whereas buying an options position does require

cost whereas buying an options position does require the payment of a premium.
Compared to the absence of upfront costs of futures, the option premium can be seen
as the fee paid for the privilege of not being obligated to buy the underlying in the
event of an adverse shift in prices. The premium is the maximum that a purchaser of
an option can lose.
Another key difference between options and futures is the size of the underlying
position. Generally, the underlying position is much larger for futures contracts, and
the obligation to buy or sell this certain amount at a given price makes futures more
risky for the inexperienced investor. The final major difference between these
two financial instruments is the way the gains are received by the parties. The gain on
a option can be realized in the following three ways: exercising the option when it is
deep in the money , going to the market and taking the opposite position, or waiting
until expiry and collecting the difference between the asset price and the strike price .
In contrast, gains on futures positions are automatically 'marked to market ' daily,
meaning the change in the value of the positions is attributed to the futures accounts
of the parties at the end of every trading day - but a futures contract holder can realize
gains also by going to the market and taking the opposite position.
Writer is required to have a margin account (because losses are unlimited),
buyer’s losses are only unlimited to the premium paid (so no margin account
required)
2. Given that the volatility is expected to rise in the future, the trader should buy the