A firm plans to buy 100,000 barrels of oil in February 2021 It wishes to hedge against a possible decline in oil prices so it buys 100 oil future contracts Each contract calls for a delivery of 1,000 barrels The future price is $52 per barrel a Suppose, on February 2021, oil prices is $51 per barr...

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A firm plans to buy 100,000 barrels of oil in February 2021. It wishes to hedge...

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A firm plans to buy 100,000 barrels of oil in February 2021. It wishes to hedge against a possible decline in

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