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1. With the aid of an example, demonstrate how a firm may reduce its exposure to commodity price risk using a futures contract. 2. Flavin
1. With the aid of an example, demonstrate how a firm may reduce its exposure to commodity price risk using a futures contract.
2. Flavin and O'Connor (2017) test the life cycle model of dividends inclusive of reputation building. Explain what you understand by "lifecycle model of dividends" and "reputation building".
3. Using payoff diagrams, determine whether buying a call is the same as selling a put.
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