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What principle is depicted in the graph?
Futures Contracts
Legal agreements to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future.
Domestic Sugar
Sugar produced and consumed within a country's borders, not involving any international trade.
Option Contract
A contract which grants the holder the right to buy or sell an underlying asset at a predetermined price within a specified time frame.
Hedge Risk
A financial strategy used to limit or offset the probability of loss from fluctuations in the prices of currencies, commodities, or securities.
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