Q6. Which of the following is an example of hedging? (A) Coca-Cola longed Water Futures to reduce exposure to water price risk (B) Disney shorted Currency Forward to reduce exposure to currency risk (C) Coffee farmers shorted Coffee Futures to reduce exposure to coffee price risk (D) All of the above Answer: Q7. Based on the learning from Futures Trading Game in Class #4 (Sep 8, 2022), which of the following is True? (A) Price discovery is an economic function of derivatives market (B) Derivatives market is a zero-net supply market (C) Derivatives market is a zero sum game (D) All of the above