1 options and futures contracts are two types of derivative, Ask an Expert

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1. Options and futures contracts are two types of derivative investments. Which of the two would you rather invest in and why? Make sure to discuss the major differences between the two as part of your answer.

2. Suppose you purchase a call option on 100 shares of XYZ stock for $6 per share. The option has an exercise price of $40 per share and the stock is currently selling for $50 per share. What is your total profit or loss on the option investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91546411

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