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Question
Southern Fuel has an inventory of 756,000 gallons of heating oil. The futures contracts on heating oil are based on 42,000 gallons. If the firm wishes to fully hedge its inventory, it should take which one of the following positions in heating oil futures contracts?A. long on 16
B. long on 17
C. short on 18
D. short on 19
E. short on 20
Answer
This answer is hidden. It contains 85 characters.
Related questions
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