Question: Question 1 Difference between forward and option (derivative) contract. Question 2 Imagine you are a Clothing Manufacturing Company. Your suppliers are offering you a contract

Question 1 Difference between forward and option (derivative) contract.

Question 2 Imagine you are a Clothing Manufacturing Company. Your suppliers are offering you a contract for raw materials in US$. Your choice is to lock in the contract (forward contract) price today (February 24) for 3 months or 6 months in US$. If you lock in for 3 months, you will be able to negotiate the contract again in 3 months and you will have some flexibility on the currency (CDN or US$) of the contract. What would you do? Provide at least two reasons that support your decision?

Question 3 Checklist of measures of Trust with Trading Partners as a part of Accounts Receivable Management.

Question 4 Advantages and disadvantages of Partnering with Financial Institutions.

Please answer all the above questions

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