INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 22, Problem 3CP
Summary Introduction
To explain: The Comparison between futures contract and option contract and also explain that portfolio risk which can be modified by both.
Introduction: When the commodities are buying or selling at a predetermined value but for the future time this dealing is called future trading but call option provides a right to the buyer. If the trading conditions are not profitable then he will not exercise the option price.
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