Assume you own an asset and there are both futures contracts and options contracts on that asset.

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Assume you own an asset and there are both futures contracts and options contracts on that asset. Provide a clear account of the difference between hedging against a price decline with futures and hedging with options. Direct your analysis to the potential gains from options and the nature of losses from a futures position.

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Related Book For  answer-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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