Question

What is the difference between forward contract and options ? How does options help in hedging Risk​

Answer 1

Answer:

Forward Contract: An Overview. A call option gives the buyer the right (not the obligation) to buy an asset at a set price on or before a set date. ... A forward contract is an obligation to buy or sell an asset.

Answer 2

Answer:

Forward Contract: An Overview. A call option gives the buyer the right (not the obligation) to buy an asset at a set price on or before a set date. Aforward contract is an obligation to buy or sell an asset. ✔️

Explanation:

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