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An oil refinery is worried about uncertainty regarding the price at which it can sell its refined oil output. To hedge this risk, the refinery

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An oil refinery is worried about uncertainty regarding the price at which it can sell its refined oil output. To hedge this risk, the refinery should take a futures. By doing so, the refinery will have a positive payoff if oil prices were to position on oil long; increase long; decrease short; increase short; decrease

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