Which type of financial derivative is used to protect against adverse price movements in an asset? A) Call option B) Put option C) Futures contract D) Swap contract

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 9QA
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Question 2
Which type of financial derivative is used to protect against adverse price movements in an asset?
A) Call option
B) Put option
C) Futures contract
D) Swap contract
Transcribed Image Text:Question 2 Which type of financial derivative is used to protect against adverse price movements in an asset? A) Call option B) Put option C) Futures contract D) Swap contract
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