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You currently hold the SPSOO index. You believe that the price of the index may fall in the next three months. You are thinking of
You currently hold the SPSOO index. You believe that the price of the index may fall in the next three months. You are thinking of using either futures or options to hedge the risks of a price fall. (a) Briey explain how you can use either an option or futures contract to hedge your risks from a price fall. (In) What are the factors you may wish to consider when choosing which derivative instrument (options or futures} to adopt
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