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

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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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Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

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Posted Date: Jul 16, 2021 08:38 AM

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

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Expert Answer:

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 the full answer

Microeconomics

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