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Suppose the price of a natural resource rises 50% unexpectedly. Suppose that a particular industry are heavy users of this resource. There is no consensus

  1. Suppose the price of a natural resource rises 50% unexpectedly. Suppose that a particular industry are heavy users of this resource. There is no consensus view on the prices direction after the price rise, but people expect the price volatility to be about the same as it was before the price rise. Would you expect there to be more or less hedging of the price risk of this resource in the industry after the price rise?

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