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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