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A corn farmer from Cameron Valley in California argues that futures contract for hedging is no use for him when mitigating risk like weather. There
A corn farmer from Cameron Valley in California argues that futures contract for hedging is no use for him when mitigating risk like weather. There are times the whole crops get wiped out by the weather. He further argues that his real risk is not the price. You are required to discuss his viewpoint. Should the corn farmer predict his future production of corn and hedge the price for expected production? Illustrate your answer within a page.
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