About the spot price at production time

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Reference no: EM131023354

If you were risk-averse and deciding how much to forward on an item not yet produced, you are uncertain about the spot price at production time and the eventual size of the production. What would be a good approach to forward? IE. always sell forward the average total produced, never sell forward more than the minimum amount produced, or don't sell forward more than the maximum or less than the minimum produced? And why ?

Reference no: EM131023354

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