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Answer the following questions about financial derivatives. Address the similarity of forward, futures and option contracts. (5%) Address the differences between option and forward/futures contracts.

  1. Answer the following questions about financial derivatives.
  1. Address the similarity of forward, futures and option contracts. (5%)
  2. Address the differences between option and forward/futures contracts. (5%)
  3. Construct a table to address the differences between forward and futures contracts. (15%)

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