Standardized financial contracts as risk management tool

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Question

Which of the following is an advantage (or are advantages) of using standardized financial contracts as a risk management tool? (If your selection is not on the answer sheet, please write it in.) they are typically cheaper to enter into, since they are standardized they are typically more expensive than customized contracts they are typically more liquid, since they are standardized, and thus provide the potential to sell out of the position. their specifications may not provide a good match to the actual risk exposure being hedged.

Reference no: EM133613681

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