Heating degree-day and cooling degree-day futures contracts make payments based on whether the temperature is abnormally hot or cold. Which statement is TRUE about reducing business risk?

a. A soft drink manufacturer that sells more drinks in the summer will buy a cooling-degree-day futures contract because it will make payments when the business is slow.

b. A ski-resort operator that fears losses if the weather is warmer than usual will buy a heating-degree-day futures contract because it will make payments when the usual business suffers.

c. all of the choices.

d. An amusement park operator that worries about the cold days because people will not go to the amusement park during cold days will buy a cooling-degree-day future to offset the losses from ticket sales with gains from the futures contract.