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Unlike hedging with futures, hedging with options _____. A. locks in a particular price or rate of return for a hedger B. exposes a hedger
Unlike hedging with futures, hedging with options _____.
- A. locks in a particular price or rate of return for a hedger
- B. exposes a hedger to a risk of large losses
- C. allows a hedger to benefit from the upside price potential of the spot position
- D. involves no payment of premium
- E. Both (B) and (C)
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