Current location - Trademark Inquiry Complete Network - Futures platform - (2020 real question) The situation when copper production companies use copper futures to sell hedging is ( ).
(2020 real question) The situation when copper production companies use copper futures to sell hedging is ( ).

Answer: D

The operation of selling hedging is mainly applicable to the following situations: first, holding a certain commodity or asset (holding a long spot position at this time), Worry that the market price will fall, resulting in a decrease in the market value of the goods or assets it holds, or a decrease in its sales proceeds. Second, if you have purchased commodities or assets for future delivery at a fixed price (holding a long spot position at this time), you are worried that the market price will fall, which will lead to a decrease in the market value of your commodities or assets or a decrease in your sales income. Third, it is expected to sell a certain product or asset in the future, but the sales price has not been determined yet, and it is worried that the market price will fall, which will reduce its sales revenue.