If a firm is buying futures contracts on lumber as a hedging strategy, what must be true

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If a firm is buying futures contracts on lumber as a hedging strategy, what must be true about the firm’s exposure to lumber prices? What if a firm is writing call options on cocoa futures as a hedging strategy, what must be true about the firm’s exposure to cocoa prices?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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