Question: 7. Do futures prices contain information about future spot prices? Explain in detail. 8. Should a corporation hedge? Why might it increase firm value? Are

7. Do futures prices contain information about future spot prices? Explain in detail.

8. Should a corporation hedge? Why might it increase firm value? Are there any reasons why a firm would not want to hedge? Explain in detail.

9. Compare and contrast the commitments taken on by a futures contract seller versus a buyer of a put option. Explain in detail.

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