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Question 1 5 4 p t s An elevator anticipates purchasing 1 , 0 0 0 , 0 0 0 bushels of soybeans on the
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An elevator anticipates purchasing bushels of soybeans on the spot market at harvest and wants to use options to hedge price risk. The size of one option on soybeans is bu In order to protect itself from potentially unfavorable movements in the spot price between now and the harvest, the elevator manager can
sell put options on soybeans.
sell call options on soybeans.
buy put options on soybeans.
buy call options on soybeans.
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