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11. Suppose that your business is farming and that you farm several hundred acres of citrus. Your orange trees bloom in May and the oranges
11. Suppose that your business is farming and that you farm several hundred acres of citrus. Your orange trees bloom in May and the oranges are harvested in October. You have considered the current wholesale price of oranges and are convinced that the price will decline before harvest. The futures maturity date to your harvest for citrus futures is for September. Explain how you could use the September futures contracts for citrus to hedge against your expected price decline. Be sure to indicate whether you will need to take a long or a short position in the futures market
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