Which of the following statements is correct?

Knowledge Check Which of the following statements is correct? Producers have exposure to price decreases and hedge this risk by purchasing instruments that enable them to lock in the highest price possible. Producers are not concerned with exposure to price fluctuations. They purchase instruments that enable them to offer the most appealing price to consumers. Producers have exposure to price decreases and hedge this risk by purchasing instruments that enable them to lock in the lowest price possible. Producers have exposure to price increases and hedge this risk by purchasing instruments that enable them to lock in the lowest price possible. Submit Answer