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Homework practice #8 You are an oil trader wishing to hedge against oil price risk.You have to purchase 100k barrels of oil in the course

Homework practice #8

You are an oil trader wishing to hedge against oil price risk.You have to purchase 100k barrels of oil in the course of the next 3 months.Oil futures are available for you to implement your hedging strategy.Describe your hedging strategy using oil futures and explain how it will help you hedge against oil price risks.

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