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A bakery needs to buy wheat in October. How should it hedge the wheat price risk? (please note that the bakery does not intend to
A bakery needs to buy wheat in October. How should it hedge the wheat price risk? (please note that the bakery does not intend to go through the actual delivery process specified in the futures contract).
(a) A long hedge: long the October wheat futures contract
(b) A long hedge: long the November wheat futures contract
(c) A short hedge: short the October wheat futures contract
(d) A short hedge: short the November wheat futures contract
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