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What type of futures contract would hedge the risk what


Purpose to calculate the commodity contract quotes to hedge Aluminum prices. 1) what would be the risk strategy if we had the opposite natural in aluminum? (inflow) 2) what would our natural position look like? (unhedged) 3) what type of futures contract would hedge the risk? (payoff of hedge price) 4)what would the combined payoff look like? combination equals (unhedge)+(payoff of hedge price).

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Financial Management: What type of futures contract would hedge the risk what
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