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by providing a means to hedge the price risk associated with storing a commodity,futures contracts make it possible to separate the decision of whether to physically store a commodity from the decision to have financial exposure to price changes .THE COURSE OF FINANCE 2017 SPRING SJTU ●7 by providing a means to hedge the price risk associated with storing a commodity, futures contracts make it possible to separate the decision of whether to physically store a commodity from the decision to have financial exposure to price changes
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