Futures contracts on stock indexes are settled in cash

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Reference no: EM131983118

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1. Futures contracts on stock indexes are settled in cash.

2. The premium on an options contract is paid to the seller of the option only if the option is exercised.

3. A forward contract is most likely handled by an exchange.

4. In a long call option position, if the market price is higher than the strike price the contract has positive profit potential

Reference no: EM131983118

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