In each of the following situations what risk do you face


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.

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Finance Basics: In each of the following situations what risk do you face
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