Jivanka industries uses crude oil as one of its major raw


Jivanka Industries uses crude oil as one of its major raw material inputs. The company is concerned that significant increases in the price of crude oil could jeopardize its profits. How can the company use future contracts and/or options to protect itself against unfavorable price movements? Should it automatically hedge its entire exposure? Why or why not?

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Finance Basics: Jivanka industries uses crude oil as one of its major raw
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