Question: 1 . JL Distribution ( JLD ) plans to hedge its November purchase of crude oil. JLD will employ a long futures market hedge. a

1. JL Distribution (JLD) plans to hedge its November purchase of crude oil. JLD will employ a long futures market hedge.
a. To hedge the November spot market crude oil purchase, what will JLDs trades in the futures market look like?
b. If crude oil prices go down will JLD make a profit or loss on its hedge position?

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