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Explain the Advantages of Protecting Against Interest-Rate Risk Using Options

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Essay

Explain the advantages of protecting against interest-rate risk using options rather than futures contracts.


Definitions:

Collectivistic

A social pattern where individuals prioritize the needs and goals of the group over personal desires or ambitions.

Communalist

A person who advocates or practices communal living or shares a belief in the benefits of communal ownership and control.

Fascist

Describes an authoritarian and nationalistic right-wing system of government and social organization.

Anarchists

Extreme individualists who believe that all government or organization of society should exist only voluntarily and that individuals should govern themselves.

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