Explain the difference between entering into a short forward contract with the forward price $50.00 and selling

Question:

Explain the difference between entering into a short forward contract with the forward price $50.00 and selling a call option with a strike price of $50.00.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Organic Chemistry

ISBN: 9788120307209

6th Edition

Authors: Robert Thornton Morrison, Robert Neilson Boyd

Question Posted: