2. What is the major difference in the obligation of one with a long position in a futures (or forward) contract in comparison to an options contract?
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- 37-Which one of the following derivatives is flexible and tailored to specific requirements of the buyer and seller of derivatives? O a. Forward contract O b. Futures contract O c. Both futures and forward contract O d. None of the optionsWhat are the main differences between options and warrant contracts and forward and futures contracts?26. What are the differences between short and long positions in futures transactions?
- 3.How can options, futures, and forward contracts be used to devise simple hedging strategies? Discuss similarities and differences between futures contracts and forward contracts.What is a futures contract? What are the key differences between forward andfutures contracts?Discuss two similarities and two differences between a futures contract and a forward contract. When would the use of one be preferred over the other?
- What is the difference between forward and futures contracts, focusing on the pros and cons of each.Explain the difference between a put option and a short position in a futures contract.S1 Q1 What are the conditions under which forward and futures prices are equivalent at the time of contract initiation?
- 34) What is an interest-rate futures contract? How does it differ from an interest-rate forward contract? 35) Explain using an example the statement that "at the expiration date of a futures contract, the price of the contract is the same as the price of the underlying asset to be delivered." 36) Where are financial futures traded? Describe that market.“The major difference between futures and options arises from the different obligations of buyers and sellers “ Do you agree? ExplainWhat is the key difference between futures contracts and options?