A Copper Producer Is Worried About the Copper Prices Going

question 29

Multiple Choice

A copper producer is worried about the copper prices going down.The risk of downward movement in prices can be hedged by taking one of the following positions.

• A)Buying call options on copper.
• B)Selling copper futures.
• C)Buying copper futures.
• D)Selling copper put options.

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Definitions:

Organizational Change

The method by which a business or institution modifies its framework, tactics, practices, technologies, or corporate culture.

Design Competitions

Contests or challenges where individuals or groups submit designs in response to a set of criteria or themes, often with the aim of selecting the best.

Crowdsourcing

Outsourcing aspects of a decision process to a large collection of people.

Open Innovation

An approach to innovation that stresses the importance of collaboration with external partners and the exchange of knowledge to spur creativity and new developments.