Question: Question 4. True or False : While it is possible to perfectly hedge away future risk using futures contracts, it isn't possible to do so

Question 4. True or False: While it is possible to perfectly hedge away future risk using futures contracts, it isn't possible to do so with options. Please explain.

Question 5. True or False: The current price of Apple stock is S0. A futures contract on Apple stock with a futures price of F0 has a delivery date of 1 year. One-year Treasury Bills are assumed to be risk-free and pay a (net) interest rate given by F0/S01. Then Apple stock pays no dividends. Please explain.

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