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Describe the type of derivatives as well as the underlying variable in one of the following derivative contracts: Life insurance Home mortgage Rate lock in
Describe the type of derivatives as well as the underlying variable in one of the following derivative contracts:
- Life insurance
- Home mortgage
- Rate lock in a home mortgage
- Employee stock option
- Structured debt obligations and deposits
Why would a firm hedge risk using your selected derivative contract? Be sure to support your points with credible sources.
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