Multiple Choice
A farmer with wheat in the fields and who uses the futures market to protect a profit is an example of:
A) a long hedge.
B) a short hedge.
C) selling futures to guard against a potential loss.
D) Both A and C.
E) Both B and C.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q2: A bank has a $50 million mortgage
Q8: A financial institution has equity equal to
Q35: On March 1,you contract to take delivery
Q37: On March 1,you contract to take delivery
Q40: You have taken a short position in
Q41: If a firm purchases a cap at
Q43: In percentage terms, higher coupon bonds experience
Q46: A savings and loan has extremely long-term
Q47: Which of the following is true about
Q50: If the producer of a product has