Which of the following activities in the futures market describes a short hedge()
A. Intercon Bakery has a contract with several hotel chains to supply a variety of bread products at a set contract price. To protect against their cost of wheat increasing they periodically purchase wheat futures.
B. A trader who purchases commodity futures but closes out his position prior to the end of the trading day.
C. A farmer with corn acreage who short sells corn futures.
参考答案：C
解析：
A trader that sells a commodity future, on a commodity that trader owns long, is engaging in a short hedge. An example would be a firm that owns the asset but wants to reduce their risk by selling the asset now at the current price. It is a hedge because if the underlying commodity’s market value declines, the short position value will increase.