Question
A corn farmer expects to have 135,000 bushels of corn ready for sale by harvest in six months. One corn futures contract on the Chicago
A corn farmer expects to have 135,000 bushels of corn ready for sale by harvest in six months. One corn futures contract on the Chicago Mercantile Exchange is for delivery of 5,000 bushels of corn. How many futures contracts should the farmer trade (long or short) to completely hedge against price risk?
- A.Short 27 Contracts
- B.Long 27 Contracts
- C.Short 19 contracts
- D.Long 19 contracts
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
