What Is an Advantage of Using Options Instead of Forward

question 16

Essay

What is an advantage of using options instead of forward contracts when speculating on exchange rates?

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Definitions:

Executive Compensation

A broad term encompassing the financial compensation and other non-monetary benefits provided to high-level management and executives in a company, which may include salaries, bonuses, stock options, and other perks.

Financial Statement Results

The summary findings and figures derived from a company's financial statements, highlighting performance over a specific period.

Stock Options

Financial instruments granted to employees or investors, giving them the right, but not the obligation, to buy or sell a company's stock at a predetermined price within a specified period.

Financial Information

Any data related to the financial performance, position, and flows of a business, including income statements, balance sheets, and cash flow statements.