SEU Options and Future Contracts Known as Derivative Products Essay

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SEU Options and Future Contracts Known as Derivative Products Essay

Economics, Saudi electronic university

SEU Options and Future Contracts Known as Derivative Products Essay

Question Description

I’m working on a finance discussion question and need an explanation and answer to help me learn.

Textbook

Brealey, R., Myers, S., and Marcus, A. (2012). Fundamentals of Corporate Finance. (7th). New York, NY: McGraw-Hill/Irwin. ISBN: 9780078034640 (hard copy); ISBN: 9780077410711 (e-copy).Question

Explain the differences between Options and Futures Contracts? Using one example, how Options and Futures Contracts can be used to hedge against risk?

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