What is the main purpose of a hedging strategy using a forward contract or a futures contract? Explain very briefly.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter21: Risk Management
Section: Chapter Questions
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What is the main purpose of a hedging strategy using a forward contract or a futures contract?
Explain very briefly.
Transcribed Image Text:What is the main purpose of a hedging strategy using a forward contract or a futures contract? Explain very briefly.
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