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Several months from now, you will make a large purchase of iron. As such, you are exposed to movements in the price of iron between

Several months from now, you will make a large purchase of iron. As such, you are exposed to movements in the price of iron between now and then. You will hedge this exposure using an option contract. Which option position will best hedge you against unfavourable movements in iron price?

a: A long put option written on iron

b: A long call option written on iron

c: A short call option written on iron

d: A short put option written on iron

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