A Copper Producer Is Worried About the Copper Prices Going

question 12

Multiple Choice

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

• A) buying call options on copper.
• B) selling copper futures.
• C) buying copper futures.
• D) selling copper call options.

---

Definitions:

Manufacturing

The process of producing goods in large quantities using machinery and labor, often within an industrial setting.

Trade

The exchange of goods, services, or both within and between countries or individuals.

Exported

The act of sending goods or services from one country to another country for sale or trade.

Territorial Concessions

Agreements in which a country cedes a portion of its territory or the rights to it to another country, often as part of a treaty or settlement.