A Key Difference Between an Option Contract and a Forward

question 159

True/False

A key difference between an option contract and a forward contract is that the option price is determined at settlement while the forward price is determined when the contract is initiated.

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Definitions:

CNS

The central nervous system, comprising the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Seizure Disorder

A neurological condition characterized by episodes of uncontrolled electrical activity in the brain, leading to convulsions, sensory disturbances, or loss of consciousness.

Electroencephalogram

A medical test that measures electrical activity in the brain using small, flat metal discs attached to the scalp.

EEG

Electroencephalography, a method to record electrical activity of the brain using electrodes placed along the scalp.