What are the advantages of over the counter derivatives

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1. How can hedging make it easier to evaluate a manager's performance?

2. What are the advantages of using exchange-traded derivatives to hedge a risk exposure? What are the advantages of over-the-counter derivatives?

3. Conceptually, how do we determine the fair forward price for an asset? What are the necessary assumptions to arrive at a fair forward price?

Reference no: EM131315470

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