The major advantages of futures options over futures contracts include
I. positions can be hedged with a smaller commitment of capital.
II. potential losses are limited to the size of the contract.
III. greater leverage and the potential for higher percentage returns.
IV. a greater variety of commodities is available for speculating or hedging purposes.
A) II, III and IV only
B) I, II and III only
C) I, II and IV only
D) I, II, III and IV
Answer: B
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