The company buys 1000 units of the commodity from the spot
market and closes its position in the futures market at the end of
the hedge at time t=1.
What is the goal of this hedge? and explain.
A. Make a profit both in the spot market and the futures market
using the hedge
B. Buy the commodity from the future price that will prevail one
year later t=1
C. Buy the commodity from the spot price at the initiation of
the hedge t=0
D. Buy the commodity from the spot price that will prevail one
year later t=1
The company buys 1000 units of the commodity from the spot market and closes its position in the futures market at the e
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answerhappygod
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The company buys 1000 units of the commodity from the spot market and closes its position in the futures market at the e
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