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You have just contracted to build a steel structure at a fixed price. You won't need the steel for six months, however, and worry that
You have just contracted to build a steel structure at a fixed price. You won't need the steel for six months, however, and worry that the price may rise and make the contract unprofitable. Therefore, you could hedge if you Lock in a price by being short and long futures at the same time O Go long futures contracts on steel. Hope because futures cannot help you. Go short futures contract on steel
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