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Signing a multi year supply agreement to fix input prices is hedging with a:

ALong term contract
BLong term deposit
CLong term dividend
DLong term discount
Answer & Solution
Correct answer: A. Long term contract
1. Both sides agree a price in advance. 2. Buyer and seller each escape price swings. 3. That tool is a long term contract. _Source: OpenStax Principles of Finance, Chapter 20, Risk Management and the Financial Manager._
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