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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
Barley Mart produces barley and sells it to wholesalers. On September the spot price of barley is Rs per quintal. Barley Mart wants to sell 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 per quintal. The contract size is MT Show that Barley Mart can fix the selling price by entering into a futures contract.
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