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List only the similarities between forward, future and option contracts

List only the similarities between forward, future and option contracts

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Answer #1

The future and forward contracts are agreements to buy or sell a security at a specific price at a future date.

Options and futures are widely used to benefit form leverage and investors try to make money or hedge their investments with the use fo these strategies. Options and futures are most commonly used investment tools in the world of finance. Both of these financial instruments are traded on public exchanges. Both contracts are standarized with a margin account available. Daily settlement takes place for both contracts. Both are traded on stock exchanges around  the world.

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