A farmer agreed to sell corn in $6$ months from now, at the spot price$($S$2)$ of that day. To reduce his price risk, he took a short position in the futures market for F$1=10.$ What is the effective price he received if $6$ months from now, F$2=8$ and S$2=7$

Question $2$Answer

a$.$

$8$

b$.$

$10$

c$.$

$9$