Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 23, Problem 4CRCT
Summary Introduction

To discuss: Hedging technique against adverse movements in the oil price.

Introduction:

Futures contract is a derivative instrument as well as a legal agreement. This contract is generally made on the trading floor of an organized exchange to buy or sell a financial instrument or a particular commodity at a predetermined price and time in future.

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