A steel manufacturing company that expects a future iron price rise can hedge and take a/an:

Question

Quizplus · Accepted Answer

A long position on iron futures contracts allows the steel manufacturing company to buy iron at the current futures price, avoiding the potential price increase in the future. This is a form of hedging. Arbitrage involves taking advantage of price discrepancies between different markets, while a short position is a bet that the price will decrease, which would not be appropriate if the company expects a price increase. Marked-to-market refers to the process of adjusting the value of a futures contract based on current market prices.

A Steel Manufacturing Company That Expects a Future Iron Price