A farmer with wheat in the fields and who uses the futures market to protect a profit is an example of:
A) a long hedge.
B) a short hedge.
C) selling futures to guard against a potential loss.
D) Both A and C.
E) Both B and C.
Correct Answer:
Verified
Q1: The buyer of a forward contract:
A)will be
Q4: A chocolate company which uses the futures
Q5: Futures contracts contrast with forward contracts by:
A)trading
Q7: LIBOR stands for:
A)Luasanne Interest Basis Offered Rate.
B)London
Q9: If the producer of a product has
Q10: A miller who needs wheat to mill
Q11: A derivative is a financial instrument whose
Q13: Derivatives can be used to either hedge
Q17: If rates in the market fall between
Q18: A futures contract on gold states that
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