The hedging opportunities by using call option and forward contract despite put option. Introduction: The option is a derivative instrument that provides an option to hedge downside and upside risk of an asset. Hence, this derivative instrument is highly sophisticated than futures and forward contracts. It includes call option and put option.

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Chapter 23, Problem 9QP

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To determine: The hedging opportunities by using call option and forward contract despite put option.

Introduction:

The option is a derivative instrument that provides an option to hedge downside and upside risk of an asset. Hence, this derivative instrument is highly sophisticated than futures and forward contracts. It includes call option and put option.

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