Question: a) Explain the differences between a futures and a forward contract. (6 marks) b) Assume that a WTI oil contract is trading at $50 per

a) Explain the differences between a futures and a forward contract. (6 marks)

b) Assume that a WTI oil contract is trading at $50 per barrel and has a contract size of 1000 barrels. If the initial margin requirement is 10% of the value of the contract, what is the implicit leverage when one goes long the contract? (6 marks)

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