Explain the advantages of protecting against interest-rate risk using options rather than futures contracts.
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Q98: One advantage of using options to hedge
Q99: Option premiums increase as the term to
Q100: Futures contracts are subject to default risk.
Q101: Intermediaries add value to the swap markets
Q102: Explain how a swap could be used
Q104: Define and distinguish between call options and
Q105: How would a firm use exchange rate
Q106: Explain how a long hedge could be
Q107: Interest-rate swaps are more liquid than futures
Q108: Currency swaps involve the exchange of a
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