Discuss the relative advantages and disadvantages of using futures versus forward contracts.
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Q42: Discuss the difference between speculating and hedging.
Q43: Derivatives can be a cost-effective way to
Q44: Speculators take a position to reduce their
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Q46: A zero cost collar:
A) is risk-free.
B) is
Q48: Give an example where an interest rate
Q49: A long hedge would be appropriate for
Q50: Forward contracts rarely require a performance guarantee
Q51: When futures prices falls, buyers gain at
Q52: Arbitrageurs take relatively low-risk positions.
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