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Question of the Week - Alternative Investments
You are in the business of designing custom jewelry. You buy gold as a raw material but keep very little gold as inventory. Profits the past few years have been volatile, with one variable being the price of gold. Which of the following long positions would be least appropriate to hedge against the increase in gold price?
Question of the Week - Alternative Investments 22 votes
Shares in the SPDR Gold Trust ETF
A gold future, marked to market daily
An option to sell gold at $2,000, 4 months from now