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NEW QUESTION: 1
Using a forward transaction, Omega Bank buys 100 metric tones of aluminum for delivery in six-months' time. However, after two months, the bank becomes concerned with the potential fluctuations in aluminum prices and wants to hedge its potential exposure against a possible decline in aluminum prices. Which one of the following four strategies could the bank use to offset the risk from its current exposure to aluminum as it sets the price for selling the commodity in four-months' time?
A. Buy an aluminum forward contract
B. Buy an aluminum futures contract
C. Sell an aluminum futures contract
D. Sell an aluminum forward contract
Answer: C

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