Question: IMPORTANT ............... PLEASE HELP .................... You are a big scale cooking oil producer (produce 1000 tons yearly). Let assume crude palm oil is your essential

IMPORTANT ............... PLEASE HELP ....................

You are a big scale cooking oil producer (produce 1000 tons yearly). Let assume crude palm oil is your essential raw material to make the cooking oil and now you are concerned about the fluctuation of crude palm oil price in the coming months. You would like to hedge your price risk with a forwards contract instead of a futures contract. Justify.

Note ; Please write for 6 marks

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