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A manufacturer of copper wire, concerned about future price volatility of copper, decides to secure contracts guaranteeing a purchase price of $ 4 per pound

A manufacturer of copper wire, concerned about future price volatility of copper, decides to secure contracts guaranteeing a purchase price of $4 per pound in 6 months. These contracts are standardized, exchange-traded, and quoted in US dollars, with each contract covering 25,000 pounds of copper. These contracts are examples of _____________.

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