Question: Please answer the following questions. a) What is the difference between investment asset and consumption asset's forward pricing? ( 2 marks) b) For out-of-the-money put

Please answer the following questions. a) What is the difference between

Please answer the following questions. a) What is the difference between investment asset and consumption asset's forward pricing? ( 2 marks) b) For out-of-the-money put options, what is the relation between the option price and the option's time value? ( 2 marks) c) Explain how to construct a covered call strategy. (1 mark)

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