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You work for Kellogs. Your analysis shows that the price of wheat (which is a significant source of costs for the firm) is likely to

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You work for Kellogs. Your analysis shows that the price of wheat (which is a significant source of costs for the firm) is likely to go up over the next three months. How would you use the futures market to hedge your risk? Short wheat futures contract There is no risk and hence no hedge is necessary long wheat futures contract

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