Assume the existence of a futures market in human blood. The spot price (today's market price) is $200 per pint. (A curious comparison - HP #45 ink cartridges are $355 per pint.) Your hospital is concerned about rising blood prices because competition and regulation prevents it from passing the cost along to patients. 

Explain how to use futures as a hedge against increases in the price of human blood.

Answer rating: 100% (QA)

To use futures as a hedge against increases in the price of human blood your hospital can employ the following strategy 1 Determine the desired hedge ... View the full answer