Which one of the following investments would not be a hedge


1. Which one of the following investments would NOT be a hedge  for a corn farmer ?

Purchase a call on the corn futures

Purchase a Put on Corn futures

Purchase a water contract that enables the farmer to take delivery of water in the future

Purchase an option on the future price of gold

2. Consider a firm that has dual-class shares with 250 million Class A shares having one (1) vote each and 75 million Class B shares having ten (10) votes each. If one requires 51 percent of the votes to control this firm, what number of Class B shares must one control ?

37.5 million

51 million

125 million

152.5 million

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Financial Management: Which one of the following investments would not be a hedge
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