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Question 592 - CTFA discussion

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End users need to hedge the prices at which they can purchase these commodities for instance:

A.
A University might want to lock in the price at which it purchases electricity to supply its air conditioning units for upcoming summer months
Answers
A.
A University might want to lock in the price at which it purchases electricity to supply its air conditioning units for upcoming summer months
B.
An airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel
Answers
B.
An airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel
C.
A cotton producer wants to hedge his exposure to changes in the price of fertilizers or his end product (cotton)
Answers
C.
A cotton producer wants to hedge his exposure to changes in the price of fertilizers or his end product (cotton)
D.
Only A and B
Answers
D.
Only A and B
Suggested answer: D
asked 16/09/2024
mohammed rafiuddin
38 questions
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