Explain difference between a forward contract and an option

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Explain the difference between a forward contract and an option?

What factors distinguish a forward contract from a futures contract? What do forward and futures contracts have in common? What advantages does each have over the other?

Reference no: EM131325966

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Explain difference between a forward contract and an option : Explain the difference between a forward contract and an option?- What factors distinguish a forward contract from a futures contract?
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