Question: In chapter 19, what were the risks associated with the use of short-term forward contracts? Question 7 options: A) They would lock Kilgore into a
In chapter 19, what were the risks associated with the use of short-term forward contracts? Question 7 options: A) They would lock Kilgore into a more long-term price and could eliminate bigger upside profits B) Use up the borrowing capacity of Kilgore due to the requirements of margins C) The upfront costs that would eat into the profitability of the contract up front and cause additional cash flow requirements D) The risk of the individual who would manage the actual future contracts and take the responsibility of the risk of buying/selling them E) None of the above
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