Question: Question 5: (a) Explain the differences between forwards and futures. Why would an investor use futures contracts? (16 marks) (b) What is meant by a

Question 5: (a) Explain the differences between forwards and futures. Why

Question 5: (a) Explain the differences between forwards and futures. Why would an investor use futures contracts? (16 marks) (b) What is meant by a protective put and a covered call? Use diagrams to explain your answer. (17 marks)

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