Hedging with Commodity Futures

question 37

Multiple Choice

Hedging with commodity futures

• A)reduces the risk of loss
• B)results when an investor buys a contract
• C)occurs when the individual takes delivery
• D)is the opposite of selling short

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Definitions:

Typewritten

Documents or text produced using a typewriter or similar technology, characterized by uniform spacing and font.

Signature Stamp

A stamp made to mimic a person's signature, often used for authorizing documents in a more efficient manner.

Necessary Indorsement

An endorsement required to transfer the rights of a negotiable instrument to another party in the course of business transactions.

Dishonor

The refusal or inability of a party to honor a financial obligation or instrument, such as a check or bill of exchange, when presented for payment.