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3. The major disadvantage of forward and futures contracts relative to options is that the forwards and futures contracts a) cannot protect the holder against

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3. The major disadvantage of forward and futures contracts relative to options is that the forwards and futures contracts a) cannot protect the holder against the risk of adverse movements in exchange rates b) are more expensive c) are available only for relatively short maturities d) do not cap downside losses while still allowing for a profit from favorable movements in exchange rates

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