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Rickos Rickos
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6 years ago
Swenson Oil & Gas allows its customers to prepurchase heating oil in June for the coming winter. If Swenson does not hedge its positions in the futures market
A) it could make unexpected profits if fuel prices decline.
B) it could suffer large losses if the winter wholesale cost of fuel rises above the June retail price.
C) it will make normal profits if winter prices do not change very much from the June spot price.
D) all of the above.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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vanrheevanrhee
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6 years ago
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Rickos Author
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#2
6 years ago
I want to thank you for being so helpful
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