To think critically about: Effectiveness of the hedging for the oil and gold firm when firm wishes for short maturity. Introduction: Hedging of the risk in oil-producing and gold mining is decided by the storage cost and convince. Oil trading is effected by the long term changes in prices but not effected in gold mining.

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Chapter 23, Problem 3PS

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To think critically about: Effectiveness of the hedging for the oil and gold firm when firm wishes for short maturity.

Introduction: Hedging of the risk in oil-producing and gold mining is decided by the storage cost and convince. Oil trading is effected by the long term changes in prices but not effected in gold mining.

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