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Can you explain in detail with own words Explain how companies can hedge risks in their operating costs by using each of the following instruments.
Can you explain in detail with own words
Explain how companies can hedge risks in their operating costs by using each of the following instruments. Hypothetical examples are required.
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Futures and forward contracts
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Option contracts
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Swap contracts
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Buying one asset and selling another. What is the hedge ratio and how is it determined?
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