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jdiaz197 jdiaz197
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3 years ago
Your company uses wheat in the production of a breakfast cereal. Which of the following actions would allow you to reduce upside price fluctuations in the price wheat?

I.  Sell a futures contract on wheat.
II.  Buy a futures contract on wheat.
III.  Buy a call option on wheat futures.
IV.  Sell a call option on wheat futures.


▸ II only

▸ IV only

▸ I or IV only

▸ II or III only
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
Authors:
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SarahJosephSarahJoseph
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3 years ago
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jdiaz197 Author
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3 years ago
You make an excellent tutor!
larrybrads
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Yesterday
Good timing, thanks!
Fanmkreyol
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2 hours ago
This site is awesome
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