Explain how you can use puts or calls as hedging tools to


Suppose that you are a hedger. That is, you (or your business) is exposed to some type of financial risk. Using some hypothetical numbers and examples of your own, explain how you can use puts (or calls) as hedging tools to protect you from the risk. Assume 3% of your option’s exercise price as transaction costs.

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Financial Management: Explain how you can use puts or calls as hedging tools to
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