Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If you have a large oil inventory and you are worried about the price falling in the next 3 months, you should: A. Go long

If you have a large oil inventory and you are worried about the price falling in the next 3 months, you should:

A. Go long a futures contract on oil

B. Go short a futures contract on oil

C. Go long and short so you can lock in a price

D. Hope because there's nothing else you can do

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International financial management

Authors: Jeff Madura

12th edition

1133947832, 978-1305195011, 978-1133947837

More Books

Students also viewed these Finance questions

Question

What are the skills of management ?

Answered: 1 week ago