Question: Question 1 A bread factory expects to purchase 210 tonnes of wheat in 3 months' time. CME Wheat futures with a three-month expiration exist

Question 1 A bread factory expects to purchase 210 tonnes of wheat in 3 months' time. CME Wheat futures with a three-month expiration exist for delivery of 70 tonnes of wheat. How should this factory hedge its exposure? [5 marks]

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