Question: 3 2 Multiple Choice 1 point A silver mining company has used futures markets to hedge the price it will receive for everything it will
Multiple Choice
point
A silver mining company has used futures markets to hedge the price it will receive for everything it will produce over the next years. Which of the following is true?
It is liable to experience liquidity problems if the price of silver rises dramatically.
It is liable to experience liquidity problems if the price of silver falls dramatically.
The operation of futures markets protects it from liquidity problems.
It is liable to experience liquidity problems if the price of silver rises or falls dramatically.
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