The text discusses using futures, forwards, and swaps to hedge. For each, give a speciﬁc example
of a ﬁrm that needs to hedge and how it might use the contracts to do so. (For example a wheat
farmer needs to sell wheat, thus sells futures to lock in a price at harvest.)

Question

Quizplus · Accepted Answer

The Answer of The text discusses using futures, forwards, and swaps to hedge. For each, give a speciﬁc example
of a ﬁrm that needs to hedge and how it might use the contracts to do so. (For example a wheat
farmer needs to sell wheat, thus sells futures to lock in a price at harvest.)

The Text Discusses Using Futures, Forwards, and Swaps to Hedge