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A crude oil seller uses futures contracts to hedge the price it will receive for crude oil sale over the next 2 years. Which of

A crude oil seller uses futures contracts to hedge the price it will receive for crude oil sale over the next 2 years. Which of the following is true?
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The party is liable to experience liquidity problems if the price of crude oil rises dramatically.
The party is liable to experience liquidity problems if the price of crude oil remains largely unchanged.
The futures markets protect the party from liquidity problems.
The party is liable to experience liquidity problems if the price of crude oil falls dramatically.

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