Multiple Choice
Four investors enter into long sugar contracts.Three are speculators and one is hedging.Which of the following is hedging?
A) Farmer
B) Cereal company
C) Mutual fund
D) None of these answers
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q5: For commodity futures: Net convenience yield =
Q10: As a commodity futures contract nears expiration,
Q27: Most of the world's largest companies use
Q36: The hedge ratio or delta measures the
Q49: Suppose that you bought eight Euro currency
Q50: If the one-year spot interest rate is
Q50: A financial institution can hedge its interest
Q53: What is the difference between hedging, speculation,
Q56: When a firm hedges a risk, it<br>A)eliminates
Q58: The spot price of wheat is $2.90/bushel.The