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Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States. During the current COVID-19 pandemic,

Pacific Ethanol is the leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the United States. During the current COVID-19 pandemic, demand for gasoline has plummeted, taking the demand for ethanol with it. Prices have dropped dangerously close to the cost of production. Pacific Ethanol wishes to protect itself from further price drops. Should they take a short or a long position in ethanol futures?

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