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Mr. Rossi is the CFO of Starlight Corporation which manufactures light fittings. Its main market is the US. Mr. Rossi wanted to hedge his US

Mr. Rossi is the CFO of Starlight Corporation which manufactures light fittings. Its main market is the US. Mr. Rossi wanted to hedge his US dollar receipts.

(i) Discuss two (2) reasons why Mr. Rossi chose to use forward contracts instead of futures contracts.

(ii) Discuss one (1) reason why Mr. Rossi did not consider using swaps instead of futures contracts.

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