End users need to hedge the prices at which they can purchase these commodities for instance:

Question

Quizplus · Accepted Answer

Both A and B are examples of end users who need to hedge the prices at which they can purchase commodities. The university wants to lock in the price of electricity for its air conditioning units in the upcoming summer months, while the airline wants to lock in the price of jet fuel to satisfy the peak demand for travel. Option C is also a valid example, but it is not the only other option as there are likely many other end users who need to hedge their exposure to changes in commodity prices.

End Users Need to Hedge the Prices at Which They