Natural gas futures to hedge its costs of power production

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Reference no: EM13870593

Chevron is considering the use of natural gas futures to hedge its costs of power production. Which of the following methods is Chevron most likely to use to deem this hedge highly effective?

a) The short cut method

b) The dollar offset method

c) The variance reduction method

d) The regression method

Reference no: EM13870593

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