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Question 30 2.5 pts You are the buyer of cocoa for a candy company. On average, the company uses 100 metric tons of cocoa each

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Question 30 2.5 pts You are the buyer of cocoa for a candy company. On average, the company uses 100 metric tons of cocoa each year. The futures contract size for cocoa is 10 metric tons. Since cocoa is a key ingredient in the firm' product, any price increase in cocoa can be devastating to the firm's net profit. Probably the best method of eliminating this price risk on cocoa would be to: buy a year's worth of cocoa at one time. T buy 10 futures contracts with varying expiration dates throughout the year. - bar 25 katres contacts every serdar que torna sell 10 futures contracts with varying expiration dates through the year. 22 3 ORE Question 31 2.5 pts If a U.S.firm expects to be paid in euros in two months, to hedge against exchange rate risk the firm should sell foreign exchange futures. buy foreign exchange futures mucho fute

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