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We know that options on futures can be used to replicate the payoff from an underlying futures asset. Tell me how you would replicate the
- We know that options on futures can be used to replicate the payoff from an underlying futures asset. Tell me how you would replicate the payoff from, say, selling a futures contract. Now explain why people would seek to replicate a futures contract with options when futures contracts are already a thing? Why the extra steps?
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