Difference between a forward contract and an option

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1. In your opinion, what "one thing" is moving the US equity markets?

2. Explain the key mechanical difference between a forward contract and an option?

 

3. Some time ago, a call option on UK pounds has a strike price of $2.05/£ and a cost of $0.02. What was the breakeven price for the option?

Reference no: EM131575463

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