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Futures contracts share similarities with forward contracts in that they both 1) have volatile price movements and strong interest from buyers and sellers. 2) give

Futures contracts share similarities with forward contracts in that they both

1) have volatile price movements and strong interest from buyers and sellers.

2) give the holder the option to make a transaction in the future.

3) have similar liquidity.

4) Average monthly volume of trading on the exchange.

5) Average number of shares outstanding in those stocks.

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