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A wheat farmer expects to have 100 metric tonnes of Western Australian wheat to sell in three months. The Western Australian wheat futures contract on
A wheat farmer expects to have 100 metric tonnes of Western Australian wheat to sell in three months. The Western Australian wheat futures contract on the Australian Securities Exchange is for the delivery of 20 metric tonnes of wheat. How can the farmer use the contract for hedging? From the farmers viewpoint, what are the pros and cons of hedging?
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