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Western Jet Requires a Minimum of 1,000,000 Litres of Jet

Question 63

Multiple Choice

Western Jet requires a minimum of 1,000,000 litres of jet fuel each month to keep its fleet of Airbus 380A passenger jets running.If Western Jet Operations Manager enters into a future contract to buy 750,000 litres of jet fuel in 90 days he is engaging in ____________.


A) Speculation
B) Swap options
C) Selling Short
D) Hedging

Correct Answer:

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