QUESTION 14 a) Discuss the major difference between futures (or forward) contract in comparison to an options contract? b) Lakers PLC Is a US manufacturing company locate in Houston. The company, took out a fixed-interest Japanese bank loan several years ago. Lakers PLC must pay interest of 5,000,000 Yen in six months' time. The following information is available. Interest rates that can be used by Lakers PLC: Borrow Deposit Yen interest rate 10.0% per year 7.5% per year dollar interest rate 4.5% per year 3.5% per year You are required to: Calculate whether a forward market hedge or a money market hedge should be used by Lakers to hedge the interest payment of 5million Yen in six months' time. Assume that Lakers would need to borrow any cash it uses in hedging exchange rate risk