Northern Refineries does not avoid risk by selling oil futures. If prices stay above $2.40 a gallon,

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“Northern Refineries does not avoid risk by selling oil futures. If prices stay above $2.40 a gallon, then it will actually have lost by selling oil futures at that price.” Is this a fair comment?

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Principles of Corporate Finance

ISBN: 978-1260013900

13th edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen

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Question Posted: Sep 27, 2019 12:48 PM

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Northern Refineries does not avoid risk by selling oil futures. If prices stay above $2.40 a gallon,

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Principles of Corporate Finance

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