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How the company can hedge the position

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Question 1: A textile company needs 150000 bushels of cotton in September 2020 for the upcoming season. The company would like to lock in its costs. The cotton futures price for September delivery is $6.578 per bushel today. How the company can hedge its position? (Purchase or sell) What total cost would you effectively be locking in based on the closing price of the day?

Reference no: EM132544886

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