Question: A manufacturing company uses copper as an input factor for its production processes and would like to hedge its copper price exposure with derivatives. The

A manufacturing company uses copper as an input factor for its production processes and would like to hedge its copper price exposure with derivatives. The company is not sure whether to use futures or forward contracts and is asking you for advice. List two advantages and two disadvantages of a hedging strategy using forward contracts as compared to hedging with futures contracts.

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