1. Complete the following questions about future and option contracts. a. Give an example of a...

1. Complete the following questions about future and option contracts.

a. Give an example of a future contract. Make sure you include all necessary terms of a future contract in your example.

b. Give an example of an option contract. Make sure you include all necessary terms of an option contract in your example. Is your example a put option or a call option?

c. Compare the rights and obligations of buyers and sellers of futures contracts with the rights of buyers and sellers of options contracts.

Expert Solution

Rahul Sunny answered 2 years ago

As in stated in Financial Instruments, explain the derivative markets and give example of option and future contracts trading!

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