Futures and Options Contracts
January 19th, 2023
Make a Power Point with details about the differences between using futures contracts and options contracts in order to reduce risk.
– Are there any advantages to using one of the instruments over the other
– Is one of these more effective than the other?
– Are the costs of each different?
– Calculate how many call options contracts would be needed if you were trying to hedge a portfolio of 200 shares of stock.
– Please give concrete explanations of each and also make examples where it would be more appropriate to utilize an options contract over a futures contract and vice versa.