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You are a risk manager for a chemicals company who uses natural gas as an input in its manufacturing process. The CFO calls you in
You are a risk manager for a chemicals company who uses natural gas as an input in its manufacturing process. The CFO calls you in his/her office and asks what type of hedge program he/she should put on for the upcoming winter, one using long natural gas forwards or one using long natural gas futures. In recommending one of the two strategies, substantiate your answer by citing two advantages of the one type of contract you choose over the other and one disadvantage.
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