Explain the Differences Between an Option Contract and a Forward

question 1

Essay

Explain the differences between an option contract and a forward contract.

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Definitions:

Financial Compensation

Payment provided to someone in exchange for an injury, loss, or the performance of a service or job.

Freedom Petitions

Arguments for liberty presented to New England’s courts and legislatures in the early 1770s by enslaved African-Americans.

Enslaved African-Americans

Individuals of African descent who were forcibly brought to the United States and subjected to forced labor and servitude until the abolition of slavery.

Declaration Of Independence

A document adopted on July 4, 1776, by the Second Continental Congress, declaring the thirteen American colonies independent from British rule.