1. Explain the basic differences between the operation of a currency forward market and a futures market. 2. In order for a derivatives market to function most efficiently, two types of 3. Why are most futures positions closed out through a reversing trade rather than 4. How can the FX futures market be used for price discovery? economic agents are needed: hedgers and speculators. Explairn held to delivery? 5. What is the major difference in the obligation of one with a long position in a futures (or forward) contract in comparison to an options contract? 6. What is meant by the terminology that an option is in-, at, or out-of-the-money? 7. List the arguments (variables) of which an FX call or put option model price is a function. How do the call and put premiums change with respect to a change in the arguments