How does a futures contract differ from a forward contract

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1. How does a futures contract differ from a forward contract?

2. What effects does "marking to market" have on futures contracts?

3. What are the differences between foreign currency option contracts and forward contracts for foreign currency?

4. What are you buying if you purchase a U.S. dol- lar European put option against the Mexican peso with a strike price of MXN10.0 >$ and a maturity of July? (Assume that it is May and the spot rate is MXN10.5 >$.)

5. What are you buying if you purchase a Swiss franc American call option against the U.S. dollar with a strike price of CHF1.30 >$ and a maturity of Janu- ary? (Assume that it is November and the spot rate is CHF1.35 >$.)

Reference no: EM13897529

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