Question
A farmers acreage yield is 945,000 bushels of corn. He wants to exchange them in the Futures market. a. What must he do through the
A farmers acreage yield is 945,000 bushels of corn. He wants to exchange them in the Futures market. a. What must he do through the Clearinghouse? Blank 1. Fill in the blank, read surrounding text. . How many contracts need to be created? Blank 2. Fill in the blank, read surrounding text. Contracts b. Due to a bad harvest, his farm yields only 902,000 bushels. In order for him not to default on his obligation, what can the farmer do, at the clearinghouse? Be specific on what the farmer needs to do in terms of contracts. Blank 3. Fill in the blank, read surrounding text. c. If he has any corn remaining, what should he do with it, (FYI, be cognizant of odd lots)? Blank 4. Fill in the blank, read surrounding text.
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