Question:
I understand that Futures are marked to market daily and forwards are not. If the option is deep in the money, and exercised then the mark-to-market will have more money in your account and you will earn more interest.
European options–which are mark-to-market as well…so I don’t understand why this is a point with one vs the other.
Europen options you can not exercise early therefore you lose the money on the re-invested cash flow (are they talking about the cash flow received from the exercise or the cash flow received because you exercised so now you receive the cash flow from the underlying, i.e., underlying pays a dividend?–or both?)
Sorry for all the confusion–trying to understand this.