The eventual size of the production

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If you were risk-averse and deciding how much to forward on an item not yet produced, you are uncertain about the spot price at production time and the eventual size of the production. What would be a good approach to forward? IE. always sell forward the average, never sell forward more than the minimum amount, or don't sell forward more than the maximum or less than the minimum? And why ?

Reference no: EM131023329

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