Tyndal Products Company Produces Cereal

Tyndal Products Company produces cereal.The company has entered into contracts to deliver 500,000 boxes of cereal during the next 18 months.The company is concerned that the prices of two ingredients,corn and wheat,may increase over the next 18 months.The company used grain futures contracts to hedge the price risk associated with these commodities.Tyndal's use of hedging illustrates which risk management technique?

A) noninsurance transfer
B) risk avoidance
C) risk retention
D) risk assumption