A regional furniture maker uses 100,000 board feet of hardwoods each quarter. To reduce the impact of short-term price movements, the company could:
A) Sell a call on lumber.
B) Sell a put on lumber.
C) Do a currency swap.
D) Do a commodity swap.
E) Sell a cross-hedge.
Correct Answer:
Verified
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A) Financial asset
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A)
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Q169: A payoff profile helps:
A) Determine the price
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