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How can Ben's company use derivatives - specifically futures contracts to limit risk around price changes of diesel fuel in the face of shortages? Select
How can Ben's company use derivatives specifically futures contracts to limit risk around price changes of diesel fuel in the face of shortages?
Select the correct answer.
A
Ben's company can use futures contracts to bet on the future price of diesel, maximizing their profits
B
Ben's company can use futures contracts to sell diesel at the current market price regardless of potential price fluctuations
C Ben's company can use futures contracts to secure a fixed price for diesel, protecting themselves from potential price increases later on
Ben's company can use futures contracts to sell diesel at a higher price when the anticipated shortage occurs, capitalizing on market demand
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