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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › future and option
Sir, May i ask future contracts and option both can be exchange traded and OTC is it?
for the flexibility to lapse or exercise will it apply to exchange trade or otc?
Futures are only exchange traded.
Options may be traded options or OTC and in both cases the option exists to either use or to let it lapse.
Sir, May I verify for the OTC option only able to lapse or exercise but exchange traded derivatives able to sell, lapse or exercise it is?
That is correct 🙂