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Suppose you are holding a stock position and wish to hedge it. What forward contract would you use, a long or a short? What option

Suppose you are holding a stock position and wish to hedge it. What forward contract would you use, a long or a short? What option contract might you use? Compare the forward versus the option on the following three criteria: 

(a) uncertainty of hedged position cash flow,

 (b) up-front cash flow, and 

(c) maturity time regret.

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When hedging a stock position whether to use a long or short forward contract and which option contract to employ depends on the specific goals and risk tolerance of the investor Lets compare the forw... blur-text-image

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