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Doritos parent company uses a lot of corn to make the chips. There is a drought in the Midwest, the heart of the Corn Belt
Doritos parent company uses a lot of corn to make the chips. There is a drought in the Midwest, the heart of the Corn Belt and the expectations are that corn prices will rise throughout the remainder of the year. What can Doritos do to keep the cost of Doritos from increasing each month? A. Use the futures market to hedge by going short corn futures B. Use the futures market to hedge by going long corn futures C. Wait 6 months before buying any more corn. D. Sell all of their current corn inventory. QUESTION 7 Futures contracts are standardized contracts. True False QUESTION 8 Futures markets often have circuit breakers. True False
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