Question: What are the differences between buying a forward contract with a price of $100 and buying a call option with a strike price of $100
What are the differences between buying a forward contract with a price of $100 and buying a call option with a strike price of $100 on the same underlying asset?
A) the forward contract is always more profitable
B) the option can only be used in the future, while the forward can be used now
C) you need to pay upfront for a forward contract, but not an option
D) you need to pay upfront for an option contract, but not for a forward
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