How do options reduce a firms financial risk
Question: How do options reduce a firm's financial risk? Under what circumstances would you recommend options as a risk-reducing strategy? (Examples)
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Emily Incorporated buys 20 percent(150,000 shares) of the capital stock of Dono Corporation on January 1, 2013, for $2,900,000.
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How do options reduce a firm's financial risk? Under what circumstances would you recommend options as a risk-reducing strategy?
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How much did you pay for your investment in the 100 option contracts? How many shares of stock do you control?
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