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If a farmer is worried the price of soybeans will decrease before harvest, what are two possible hedging strategies they might employ? Be explicit about
If a farmer is worried the price of soybeans will decrease before harvest, what are two possible hedging strategies they might employ? Be explicit about which components of cash price risk (futures and basis) are being managed. List the advantages and disadvantages of each strategy.
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
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