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11. A restaurant company will need to purchase coffee and expects increase in coffee prices in the future. To reduce risk exposure to coffee prices,
11. A restaurant company will need to purchase coffee and expects increase in coffee prices in the future. To reduce risk exposure to coffee prices, this company should: (a) Long futures contract on coffee (6) Short futures contract on coffee (c) Short forward contract on coffee (d) Not taking any position in futures or forward on coffee 12. A farming company will sell corn and expects decrease in corn prices in the future. To reduce risk exposure to corn prices, this company should: (a) Long forward contract on corn (6) Short futures contract on corn (c) Long futures contract on corn (d) Long futures contract on corn and long forward contract on corn
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