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In 6-months, Plymouth delivers 5,000 gallons of Soyabean. To construct (put together) a PERFECT HEDGE, which futures contract should be used? Futures contract specifications: (underlying
In 6-months, Plymouth delivers 5,000 gallons of Soyabean.
To construct (put together) a PERFECT HEDGE, which futures contract should be used?
Futures contract specifications: (underlying asset; contract size)
Group of answer choices
Mustard; 1,000 gallons
Soyabean; 500 gallons
Canola; 5,000 gallons
None of the above future contracts are suitable for a perfect hedge
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