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A cattle farmer expects to have 160,000 pounds of live cattle to sell in three months. The live cattle futures contract on CME is for
A cattle farmer expects to have 160,000 pounds of live cattle to sell in three months. The live cattle futures contract on CME is for delivery of 40,000 pounds of cattle. How can the farmer use the contract for hedging? From the farmers point view, what are the pros and cons of hedging?
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