A Farmer with Wheat in the fiElds and Who Uses

question 56

Multiple Choice

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.

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Definitions:

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Natural Talent

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