An orange grower who wishes to protect his future orange crop from price fluctuations can hedge by taking a/an:

Question

Quizplus · Accepted Answer

The orange grower can hedge against price fluctuations by taking a short position on an orange futures contract, which means that they are selling futures contracts of oranges at a predetermined price. If the market price of oranges decreases, the loss incurred is offset by the profit earned from the short position in the futures contract. This helps the grower to protect their future crop from price fluctuations.

An Orange Grower Who Wishes to Protect His Future Orange