Question: a. Compare the difference between forward and futures contracts. b. You purchased a put option on British pounds for RM0.06 per unit. The strike price

a. Compare the difference between forward and futures contracts. b. You purchased a put option on British pounds for RM0.06 per unit. The strike price was RM5.60 and the spot rate at the time the pound option was exercised was RM5.68. Assume there are 47,580 units in a British pound option. What was your net profit on the option? c. You purchased a put option on Australian dollars for RM0.02 per unit. The strike price was RM4.25, and the spot rate at the time the option was exercised was RM4.38. Assuming that there are 13,830 units in the Australian dollar option.Would you exercise the option? What will your net profit on the put option? d. Does forward contract backfire? Justify your answer.

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