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Options can protect a firm against the downside risk of a business transaction while preserving the upside potential from the transaction. In contrast, futures contracts
Options can protect a firm against the downside risk of a business transaction while preserving the upside potential from the transaction. In contrast, futures contracts normally protect against the downside risk but forfeit the upside potential. Why then don't firms always use options to hedge their risks instead of futures contracts
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Return Distributions In Finance
Authors: Stephen Satchell, John Knight
1st Edition
0750647515, 978-0750647519
