CTFA practice question 17 of 35

End users need to hedge the prices at which they can purchase these commodities for instance:

Full set: 895 questions
Answer options
A: A University might want to lock in the price at which it purchases electricity to supply its air conditioning units for upcoming summer months
B: An airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel
C: A cotton producer wants to hedge his exposure to changes in the price of fertilizers or his end product (cotton)
D: Only A and B Correct answer
Correct Answer:
D. Only A and B
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