Which of the following statements is correct producers have exposure. They purchase instruments that enable them to offer the most appealing price to consumers. c. #### Final Answer The correct statement is: "Producers have exposure to price decreases and hedge this risk by purchasing instruments that enable them to lock in the highest price possible. Producers have exposure to price decreases and hedge this risk by purchasing instruments that enable them to lock in the highest price possible. Feb 10, 2024 ยท Producers are not concerned with exposure to price fluctuations. " Producers are not concerned with exposure to price fluctuations. Explanation: Producers have to sell their products in the market. Producers are not concerned with exposure to price fluctuations. Submit Answer. Producers have exposure to price increases and hedge this risk by purchasing instruments that enable them to lock in the lowest price possible. Hence, option (b) is the correct answer. To hedge this risk, they can purchase instruments that allow them to sell the produce at the highest possible price. They have exposure to price decreases. Producers have exposure to price decreases and hedge this risk by purchasing instruments that enable them to lock in the highest price possible. They purchase Instruments that enable them to offer the most appealing price to consumers. In contrast, if a producer were concerned about price increases, they may consider different hedging strategies to minimize their costs, but that situation doesn't apply to the statements given. Therefore, option B accurately reflects how producers use instruments to manage the risk of price decreases effectively. ykdka bywk cdob bekk fed dbs xyai yyib uxtvkx zkai
26th Apr 2024