Question 1 1 pts Which of the following statements is not true? (a) A hedging strategy should aim to increase the profit of a company O (b) A hedging strategy should aim to reduce the bankruptcy risk of a company O (c) A hedging strategy should make the proft of a company less influenced by risk factors out of the company's control. O (d) Hedging does not always lead to a better outcome than no-hedging does. Question 2 1 pts A brewery is going to purchase wheat in October. How should he hedge the wheat price risk? (a) A long hedge: long the October wheat futures contract O (b) A long hedge: long the November wheat futures contract O (c) A short hedge: short the October wheat futures contract O (d) A short hedge: short the November wheat futures contract Question 3 1 pts On March 1 the spot price of oil was $60 and the July futures price was $62. On June 1 the spot price of oil was $63 and the July futures price was $64. A company entered into a futures contracts on March 1 to hedge 100% of its expected oil purchase on June 1, It closed out its position on June 1. After taking account of the cost of hedging, what was the effective price paid by the company for the oil? Please do not include any symbols other than the decimal point, such as the $ and % signs. or any text in your