Question: Explain call and put options. Show your own examples about how to calculate their payoff (Long call, short call, long put, and short put). Show

Explain call and put options. Show your own examples about how to calculate their payoff (Long call, short call, long put, and short put).

Show your own example about daily marking-to-market of futures contract. Include a margin call.

Show your own example about a plain vanilla interest rate swap using fixed and floating rates (Libor).

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