Explain what an option entails, and why an investor may be attracted to this type of investment.

General Questions:

Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.

1. Explain what an option entails, and why an investor may be attracted to this type of investment. Where are options traded? 2. What is the difference between commodities and financial futures? What are the risks and the benefits of each? 3. In a declining economy and housing market, what are the benefits or opportunities for the investor in this type of real estate market? What are the risks?

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