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Kelloggs uses large quantities of corn in its breakfast cereal operations. Suppose Kelloggs believes corn prices will increase before they buy their next order of
Kelloggs uses large quantities of corn in its breakfast cereal operations. Suppose Kelloggs believes corn prices will increase before they buy their next order of corn. To protect itself, Kelloggs decides to use corn futures contracts. In this scenario, Kelloggs is considered a _____ and should establish a _____ position.
A) speculator; long |
B) hedger; long |
C) speculator; short |
D) hedger: short |
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