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Question: 8 a firm desiring to enter into a derivative contract...

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8. A firm desiring to enter into a derivative contract frequently has a choice of two markets, a derivative exchange (such as a futures or options exchange) or the over the counter market (such as that provided by commercial banks offering derivatives to their customers). What characteristics of the contracts offered in the two markets, of the firm itself or of the firm’s intended use of the derivative will affect its choice of an exchange or an over the counter market?

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