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Author Question: Wonka Industries uses large amounts of cocoa in the production of its famous chocolate bars. Wonka ... (Read 85 times)

cherise1989

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on: Apr 25, 2021

Question 1

What is the name for the process of reducing a firm's exposure to adverse price fluctuations?
◦ Speculation
◦ Diversification
◦ Hedging
◦ Risk Management

Question 2

Wonka Industries uses large amounts of cocoa in the production of its famous chocolate bars. Wonka uses CME cocoa futures contracts to hedge against the risk of cocoa prices rising. The CME futures contract calls for the delivery of 10 metric tons of cocoa. To hedge the price risk, Wonka should
◦ sell cocoa futures contracts.
◦ buy cocoa futures contracts.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by cherise1989 on Apr 25, 2021

ngr69

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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cherise1989

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

fatboyy09

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Reply 3 on: Yesterday
Excellent

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