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What Is the Advantage of an Options Hedge Over a Futures

Question 93

Multiple Choice

What is the advantage of an options hedge over a futures hedge?


A) The options hedge has lower credit risk exposure.
B) The options hedge has lower transaction costs.
C) The options hedge is marked to market less frequently.
D) The options hedge offers the most downside risk protection.
E) The options hedge offers the most upside gain potential.

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