Company X is a perfume manufacturer and one of its popular products involves rosewood. It is deeply concerned with the market price fluctuations of rosewood. To protect this, it enters into a contract which would allow the company to buy rosewood at a specific price at a given future date. This is an example of
A. speculation.
B. profit maximization.
C. hedging.
D. investment.
Answer: C
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The proportion of income which is earned in the form of wages for labor is currently about
A. 15 percent. B. 35 percent. C. 51 percent. D. 60 percent.
During the middle of the 2000s, the price of gasoline soared and there was a movement to switch to fuels made from a mixture of gasoline and ethanol. Ethanol can be made from corn
The price of corn skyrocketed and then, after a couple of years, the price decreased. What might have led to these price changes in the corn market?
Suppose an identical tax is levied on capital, labor, and land. Would the tax have the same effect in each of these markets? Explain your answer
What will be an ideal response?
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment