Question: Explain forward and future contracts, option contracts, and swaps. Provide an example of each. Provide an example of the use of an option to hedge

Explain forward and future contracts, option contracts, and swaps. Provide an example of each.

Provide an example of the use of an option to hedge a purchase of inventory.

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Forward Contracts A forward contract may be a simple customized contract between two parties to shop for or sell an asset at a particular time within the future for a particular price Unlike future co... View full answer

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