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A candy manufacturer wishes to control risk by hedging its exposure to the price of sugar in the futures market. a) What position should it

A candy manufacturer wishes to control risk by hedging its exposure to the price of sugar in the futures market.

a) What position should it take in the futures market?

b) Assume it takes this position in the futures market when the futures price is 72 cents per ton. How much will the manufacturer gain or lose if the futures price moves to 75 cents per ton?

Please show explanation and no excel

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