Question
Which of the following futures strategies is suitable for a beef processing business that must purchase 800,000 pounds of lean beef in the next six
Which of the following futures strategies is suitable for a beef processing business that must purchase 800,000 pounds of lean beef in the next six (6)months? Each contract's size is 40,000 pounds.
Group of answer choices
A. Enter a short position of 20 lean beef futures contracts and then close the position when the futures price rises to a favorable level
B. Enter a long position of 20 lean beef futures contracts
C. Enter a long position of 20 lean beef futures contracts and then close the position when the price falls to a favorable level
D. Enter a short position of 20 lean beef futures contracts
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