Multiple Choice
A baker of bread has a long-term fixed-price contract to supply bread. Which of the following would NOT reduce her risk?
A) Taking the long position in wheat futures contract
B) Hedging this risk in the wheat futures market
C) Finding a wheat farmer who will take the short position in a wheat futures contract
D) Finding a wheat farmer who will take the long position in a wheat futures contract
Correct Answer:
Verified
Correct Answer:
Verified
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