What risk do you face from price fluctuations

Reference no: EM131305293

In each of the following situations, what risk do you face from price fluctuations? What would have to be true of a derivatives security if the security were to help you to hedge this risk?

a. You are a corn farmer

b. You are a manufacturer of cornbread

c. You are buying Treasury bonds to finance your child's future college tuition.

Reference no: EM131305293

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