Question
3. A corn farmer argues 'I do not use futures contracts for hedging. My real risk is not the price of corn. It is that
3. A corn farmer argues 'I do not use futures contracts for hedging. My real risk is not the price of corn. It is that my whole crop gets wiped by the weather.' Discuss this viewpoint. Should the farmer estimate his expected production of corn and hedge to try to lock in a price for expected production?
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Investing From Scratch A Handbook For The Young Investor
Authors: James Lowell
1st Edition
014303684X, 978-0143036845
