A major brewing company wants to ensure supply for its wheat beer at a favourable price. The company should use a:

Question

Quizplus · Accepted Answer

A long hedge is used by purchasers of commodities to lock in the price of a commodity to protect against the risk of rising prices. In this case, the brewing company wants to ensure it can buy wheat at a favorable price for its beer production, making a long hedge the appropriate strategy.

A Major Brewing Company Wants to Ensure Supply for Its