What kind of hedging strategy should Kirk recommend for minimizing Pre-Fabs exposure to volatility in copper prices?
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What kind of hedging strategy should Kirk recommend for minimizing Pre-Fab’s exposure to volatility in copper prices? Design a suitable hedge and show what would be the result if copper prices went to 277.5 cents per lb. at the end of three months when the company would be ordering the high-grade copper.
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The strategy to minimize PreFabs exposure to volatility in copper prices is to buy copper futures co...View the full answer
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