Question: You work for Chevron. Your profits go up when the price of oil rises. Your analysis shows that the price of oil is likely to

You work for Chevron. Your profits go up when the price of oil rises. Your analysis shows that the price of oil is likely to go up over the next three months. How would you use the futures market to hedge your risk?

Group of answer choices

Long oil futures contract

There is no risk and hence no hedge is necessary

Short oil futures contract

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