MCQOPTIONS
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MCQOPTIONS
| 1. |
Hedging is a marketing tool which: |
| A. | Removes all risk in commodity production |
| B. | Removes price level risk which is typically larger than basis risk |
| C. | Removes basis risk which is typically larger than absolute price level risk |
| D. | Removes price level risk which is typically larger than basis risk |
| Answer» C. Removes basis risk which is typically larger than absolute price level risk | |