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1 . Barley Mart produces barley and sells it to wholesalers. On September 1 , the spot price of barley is Rs . 9 2

1. Barley Mart produces barley and sells it to wholesalers. On September 1, the spot price of barley is Rs.922 per quintal. Barley Mart wants to sell 50 MT of barley in December and is concerned that the price of barley might fall during the period between September and December. In order to hedge this risk, Barley Mart wants to use futures contracts. Barley futures expiring in December are traded on the NCDEX at Rs.840 per quintal. The contract size is 10 MT. Show that Barley Mart can fix the selling price by entering into a futures contract.
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