You manufacture silver jewelry.To hedge some of your risks,you can:
A) go long silver futures to hedge input price risk
B) go short silver futures to hedge input price risk
C) go long silver futures to hedge output price risk
D) do nothing with silver futures
E) do nothing as silver futures do not trade
Correct Answer:
Verified
Q5: The holder of a long forward contract
Q6: •A US company has bought a machine
Q7: Which of the following is NOT a
Q8: Settlement of a futures trade:
A) takes place
Q9: •A US company has bought a machine
Q10: Golddiggers,Inc. ,mines gold and sells refined,pure gold
Q11: The open interest on a futures contract
Q12: Suppose that July gold futures just become
Q14: The main distinction between a forward and
Q15: Which statement is INCORRECT about futures contracts?
A)
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