ADM plans to buy 80,000 bushels of soybeans in August. The spot price of soybeans is currently $9.53/bushel. Soybean futures are defined as 5,000bu, $0.01/bu.
ADM plans to buy 80,000 bushels of soybeans in August. The spot price of soybeans is currently $9.53/bushel. Soybean futures are defined as 5,000bu, $0.01/bu. September soybeans are quoted at 974. How many future contracts will it take to fully hedge this position? (whole number), (+) long, (-) short
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Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
