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Exercice II 1. Explain the difference between futures contracts and forward contracts. 2.What is the payoff at maturity of a long position on a Call option with underlying asset S,maturity

T and strike K? Is it risky? Why would a speculator sell such an option? 3. What are the differences between a long position in a forward contract and a long position in a Call option (on the same underlying asset S)?

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