Your task is answer the following 6 question:
1. Discuss and compare Futures and Options Contracts.
About 300 words
2. Explain the rationale for Standardization and Price limits
About 200 words
3. Discuss the role of price limits and the effects in liquidity
About 200 words
4. What is the main reason for corporations and companies to use futures and options contracts as a hedging tool?
About 300 words
5. What are the limitations to futures contracts? Is there any risk premium associated with holding a futures position?
About 300 words
6. Discuss (using example/s) the different outcomes when an option is traded in conjunction with other assets.
About 350 words

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