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When Would an Option Hedge Be Better Than a Futures

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When would an option hedge be better than a futures or forward hedge?

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Definitions:

Insolvent Seller

A seller who is unable to pay their debts as they come due, impacting their transactions and business operations.

Common Law

A legal system based on judicial decisions or case law, rather than statutory laws enacted by a legislature.

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A legal remedy in contract law requiring the breaching party to fulfill their part of the contract rather than simply paying damages.

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A celebrated British novelist of the Victorian era, known for his vivid characters and depictions of social issues.

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