Question
A farmer has hedged his future corn sale by selling October 2020 corn Futures with Futures price of $300 per ton. However, he sells his
A farmer has hedged his future corn sale by selling October 2020 corn Futures with Futures price of $300 per ton. However, he sells his corn on the open market for $360 per ton and closed his Futures position in September 2020 when the Futures price was $350. What was the effective price (i.e., including gains/losses on Futures contracts) he was getting for his corn?
|
| $290 |
|
| $300 |
|
| $310 |
|
| $340 |
|
| $370 |
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Law And Financial Stability
Authors: International Monetary Fund
1st Edition
1513523007, 978-1513523002
