Question: Which two of the following are key differences between an option contract and a forward contract? I. option contracts can be resold but forward contracts
Which two of the following are key differences between an option contract and a forward contract? I. option contracts can be resold but forward contracts cannot II. the option price is determined at settlement while the forward price is determined when the contract is initiated III. the rights and obligations of the buyer IV. cost when contract initiated
III and IV only
I and II only
I and III only
II and III only
II and IV only
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