Question: Foreign Exchange- What is the difference between an options contract, forward contract and future contract? In your answer: Explain what an option is. Contrast the

Foreign Exchange- What is the difference between an options contract, forward contract and future contract?

In your answer:

Explain what an option is. Contrast the call and put option. Where are they traded? Include the meaning of a long/ short position, in/out and at the money and American and European differences. Obligation? Explain what a futures contract is. Include a comparison and contrast with forward contract, what initial margin is and what is the purpose/how is it used. Obligation?

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