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Both options and futures can be used to speculate or to hedge. Explain what especially makes futures and options attractive for speculation. A corn farmer
Both options and futures can be used to speculate or to hedge. Explain what especially makes futures and options attractive for speculation.
A corn farmer is trying to hedge his position in corn that he expects to harvest in 3 months. Explain the risks the farmer is facing (what would be the adverse change in price), how the farmer can hedge his position to reduce or eliminate his risks?
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
12th Edition
1260772160, 978-1260772166
