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For each of the following of the situations, explain whether the individual is most likely using futures as a hedging tool or for speculative purposes:
For each of the following of the situations, explain whether the individual is most likely using futures as a hedging tool or for speculative purposes:
a) A gasoline refinery purchases oil futures.
b) A Ford factory worker purchases wheat futures.
c) The CEO of an orange juice company purchases oil futures.
d) An orange farmer sells orange futures.
e) A wheat farmer purchases orange futures.
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