A candy manufacturer plans to buy a large quantity of sugar and produce candy for Christmas, which it will make and ship to stores in November, 2018….
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A candy manufacturer plans to buy a large quantity of sugar and produce candy for Christmas, which it will make and ship to stores in November, 2018. Assume that she considers hedging with sugar futures in June, 2018 owing to the speculative nature of sugarprices. What is her hedging strategy and how would she execute it? Explain in detail, step by step.
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