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What Is an Advantage of Using Options Instead of Forward

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What is an advantage of using options instead of forward contracts when hedging against exchange-rate risk?


Definitions:

Madness

A term often used historically to describe a wide range of mental health conditions or behaviors perceived as abnormal or erratic.

Measurement

The process of obtaining the size, length, or amount of something, typically using standard units.

Oxygen

A chemical element (O) essential for most forms of life, involved in cellular respiration and used in various industrial applications.

Enuresis

The medical term for involuntary urination, especially by children at night.

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