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What is an option? How does an Option differ from a forward or future contract?
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- Is the “forward price” the same thing as the “value of the forward contract” Explain.1. What is the difference between a spot and a forward rate? If the forward rate is not at parity during the outset of the contract, which theory of term structures does this violate?What are the main differences between options and warrant contracts and forward and futures contracts?