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Replicate the risk management strategy

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Reference no: EM133072407

Using the Module 6 spreadsheet template as a model, you are going to first replicate the risk management strategy of using futures contracts to hedge aluminum prices. Next, create risk management strategy if you had the opposite natural position in aluminum (in other words, an inflow). What would your natural position look like? What type of futures contract would hedge this risk? Finally, what would the combined payoff look like? Adjust the spreadsheet for this strategy.

Reference no: EM133072407

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