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The CEO of a gold producing firm that will produce 100 tons of gold this calendar year has suggested to her financial risk manager that

The CEO of a gold producing firm that will produce 100 tons of gold this calendar year has suggested to her financial risk manager that the firm should sell 120 tons of gold today in the forward market to hedge the firms position. The financial risk manager informs the CEO that this is the same as speculating. (Your answer must begin with True or False followed by your explanation.)

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