human blood prices

Assume the existence of a futures market in human blood. The spot price (today’s market price) is $200 per pint. (A curious comparison – HP #45 ink cartridges are
$355 per pint.) Your hospital is concerned about rising blood prices because competition and regulation prevents it from passing the cost along to patients. Explain how to use futures as a hedge against increases in the price of human blood.

3-You own stock in a NYSE exchange-listed healthcare company and have a hedge in place to lock in capital gains you have made, in case the price falls. Explain the significance of thehedge
View complete question »