IIA
IIA-CFSA · Question #499
End users need to hedge the prices at which they can purchase these commodities for instance:
The correct answer is D. Only A and B. See the full explanation below for the reasoning.
Question
End users need to hedge the prices at which they can purchase these commodities for instance:
Options
- AA University might want to lock in the price at which it purchases electricity to supply its air
- BAn airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak
- CA cotton producer wants to hedge his exposure to changes in the price of fertilizers or his end
- DOnly A and B
How the community answered
(27 responses)- A4% (1)
- B4% (1)
- C7% (2)
- D85% (23)
Community Discussion
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