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A firm planning to sell oil might anticipate a period of market volatility and wish to protect its revenue against price fluctuations. To hedge the
A firm planning to sell oil might anticipate a period of market volatility and wish to protect its revenue against price fluctuations. To hedge the total revenue from the sale, the firm: A. enters a long position in oil futures or purchase a call option on oil. B. enters a long position in oil futures or purchases a put option on oil. C. enters a short position in oil futures or purchase a call option on oil. D. enters a short position in oil futures or purchases a put option on oil.
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