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1. Is the commodity swap, based on a one year payment date, as described in the case, a reasonable strategy for Valley Quarry to pursue?

1. Is the commodity swap, based on a one year payment date, as described in the case, a reasonable strategy for Valley Quarry to pursue? Is there a better alternative, if so what is it?

2. What is the cost or risk to Valley Quarry if block granite and Silica prices are not perfectly correlated?

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