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a) How are margin accounts different for futures and options? b) When is a straddle strategy appropriate? Why do we need to be careful when
a) How are margin accounts different for futures and options? |
b) When is a straddle strategy appropriate? Why do we need to be careful when considering such a strategy? |
c) How is a protective put useful? |
d) Does hedging make sense for a firm operating in an industry where prices of goods or services provided fluctuate to reflect raw material costs? Why or why not? |
e) What is basis risk? |
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