Solved: Exchange-traded stock option, Finance Basics

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Exchange-traded stock option

Question 1: A stock when it is first issued provides funds for a company. Is the same true of an exchange-traded stock option? Discuss.

Question 2: Explain the link between options, futures and forward contracts.

Question 3: Explain why a futures contract can be used for either speculation or hedging.

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Finance Basics: Exchange-traded stock option

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