Question: 1 Define and Explain (30 points) 1. (10 points) An analyst comments that options are always better than forwards or futures given you have the

1 Define and Explain (30 points) 1. (10 points) An analyst comments that options are always better than forwards or futures given you have the right but not the obligation to exercise these. This implies that the payoff is bounded below by SO. In the case of forwards or futures you can face negative payoffs. Therefore, options will always be more profitable for the buyer. True or False and explains. 1 Define and Explain (30 points) ! 1. (10 points) An analyst comments that options are always better than forwards or futures given you have the right but not the obligation to exercise these. This implies that the payoff is bounded below by $0. In the case of forwards or futures you can face negative payoffs. Therefore, options will always be more profitable for the buyer. True or False and explains

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