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Options contracts have what advantage compared to futures contracts when hedging foreign currency exchange rate risk? A. Option hedges result in gains no matter which
Options contracts have what advantage compared to futures contracts when hedging foreign currency exchange rate risk?
A. Option hedges result in gains no matter which direction exchange rates move.
B. There is no cost when hedging with options.
C. Option contracts typically have an infinite life.
D. Options do not commit the buyer to exercise such that the buyer can walk away if the option would be exercised with a loss.
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