Short Hedges a Involves a short position in the futures contract It is appropriate when the hedger owns the asset and expects to sell it in the future It is also appropriate when the hedger does not own the asset now but will own it in the future Charles cao4 Charles Cao Short Hedges ◼ Involves a short position in the futures contract ◼ It is appropriate when the hedger owns the asset and expects to sell it in the future ◼ It is also appropriate when the hedger does not own the asset now, but will own it in the future