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Lucy Owns a Bakery

question 122

Multiple Choice

Lucy owns a bakery.She wants to attract new customers,brand her bakery in consumers' minds,and create impulse purchases.Which of the following should she use to accomplish these goals? 


Definitions:

Basis

The difference between the spot price of an asset and the futures price of the same asset.

Long Hedger

An investor who purchases futures contracts or the underlying asset to protect against potential price increases.

Short Hedger

An investor who enters into contracts to protect against potential losses from declining prices in the assets they hold.

Decrease

A reduction in quantity, size, or intensity of a particular activity, value, or level.

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