A forward contract is similar to an option contract because they both
A) can provide insurance against the price of the underlying stock.
B) are paid for up front in the form of premiums.
C) are paid for at the end of the contract in the form of premiums.
D) require a future settlement payment.
E) trade on exchanges.

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The Answer of A forward contract is similar to an option contract because they both
A) can provide insurance against the price of the underlying stock.
B) are paid for up front in the form of premiums.
C) are paid for at the end of the contract in the form of premiums.
D) require a future settlement payment.
E) trade on exchanges.

A Forward Contract Is Similar to an Option Contract Because