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Suppose Senior Transport inc (STI) is a transport company which consumes oil-based fuel in its transport carriers. The company usually buys oil in advance through

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Suppose Senior Transport inc (STI) is a transport company which consumes oil-based fuel in its transport carriers. The company usually buys oil in advance through the forward sales contracts. Suppose that due to Corona Virus Pandemic, there is huge supply of oil and oil prices are falling. For risk hedging purposes, the risk manager should focus more on 01. Price fal risk 02 Both price rise and price tal risk 3. Operational risk of the comparty 4. None of the above

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