Question: When does it make sense to hedge stock using futures? Under what conditions should a company hedge with futures and under what conditions should a

When does it make sense to hedge stock using futures? Under what conditions should a company hedge with futures and under what conditions should a company not hedge with futures?

Under what conditions would hedging stock pay off and under what conditions would hedging stock turn out to be very costly? How can a company decide whether to buy at the spot or futures price?

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Hedging stock using futures can be beneficial under certain conditions but its essential to consider various factors before deciding whether to hedge or not When it makes sense to hedge stock using fu... View full answer

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