A power producing company wants topurchase a natural gas futures contract. Itwill use the natural gas to generateelectricity. The company'sposition in natural gas isfutures position should beunderlying__, so itsa) long, short;b) long, long;c) short, long;d) short, short

In the domain of financial markets, futures emerge as a distinctive category of financial…

Answered: A power producing company wants to…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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A power producing company wants to purchase a natural gas futures contract. It will use the natural gas to generate electricity. The company's position in natural gas is futures position should be underlying ____, so its a) long, short; b) long, long; c) short, long; d) short, short