Factors influence decision to use future or forward contract

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Reference no: EM131313104

The chief financial officer of the corporation you work for recently told you that he had a strong preference to use forward contracts rather than futures contracts to hedge: "You can get contracts tailor-made to suit your needs."

a. Comment on the CFO's statement.

b. What other factors influence the decision to use futures or forward contracts?

Reference no: EM131313104

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