Question
Statement 1 : A bread producer enters into a 6-month forward contract to secure the purchase of wheat. Statement 2 : A New Zealand firm,
Statement 1: A bread producer enters into a 6-month forward contract to secure the purchase of wheat.
Statement 2: A New Zealand firm, which expects to receive its sales revenue of USD 1 million from oversea clients in three months, signs a 3-month FEC on the NZD/USD exchange rate today.
Statement 3: A corporation, which will take a 3-month floating rate loan from the local bank in two months, enters into a 25 FRA contract as the pay-fix-receive-floating party.
Statement 4: An airline goes long a 9-month futures contract on crude oil to cross-hedge the price risk of jet fuel.
Which of the above statements are examples of long hedgers?
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Computational Intelligence In Economics And Finance Volume II
Authors: Paul P. Wang, Tzu-Wen Kuo
2007th Edition
3540728201, 978-3540728207
