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Omega Bakery Ltd uses refatively large quantities of flour and is keen to timithe costs of this raw materiat during the high level of uncertainty that has arisen during the pandenic and the resultant vatatlity of comemodity prices. Omega's financia! manager is contemptating the use of either Wheat Futures Contracts or Wheat Optians Contracts to lock-in prices over the coing year and limit its exposure to price ffuctuations.(Note, there are no"flour" contracts and because flour is made from wheat, this seems approprinte to use).He is unsure whether prices will rise but wants to make sure the owners of the company can see he has managed this potentiat risk wel.

Identity whether he should use Futures Contracts or Options Contracts in this

Omega Bakery Ltd uses relatively large quantities of flour and is keen to limit the costs of this raw material during the high level of uncertainty that has arisen during the pandemic and the resultant volatility of commodity prices. Omega's financial manager is contemplating the use of either Wheat Futures Contracts or Wheat Options Contracts to lock-in prices over the coming year and limit its exposure to price fluctuations. (Noto, there are no "flour contracts and because flour is made from wheat, this seems appropriate to use). He is unsure whether prices will rise but wants to make sure the owners of the company can see he has managed this potential risk well Identify whether he should use Futures Contracts or Options Contracts in this instance Fill in your answer here Helo Omega Bakery Ltd uses relatively large quantities of flour and is keen to limit the costs of this raw material during the high level of uncertainty that has arisen during the pandemic and the resultant volatility of commodity prices. Omega's financial manager is contemplating the use of either Wheat Futures Contracts or Wheat Options Contracts to lock-in prices over the coming year and limit its exposure to price fluctuations. (Noto, there are no "flour contracts and because flour is made from wheat, this seems appropriate to use). He is unsure whether prices will rise but wants to make sure the owners of the company can see he has managed this potential risk well Identify whether he should use Futures Contracts or Options Contracts in this instance Fill in your answer here Helo

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