Liberty Fuel has an inventory of 1,092,000 gallons of heating oil. The futures contracts on heating oil are based on 42,000 gallons. If the firm wishes to fully hedge its inventory, it should take which one of the following positions in heating oil futures contracts?
A) long on 25
B) long on 26
C) short on 24
D) short on 25
E) short on 26
Correct Answer:
Verified
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