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In the corn futures contract a number of different types of corn can be delivered and there is a number of different delivery locations. The
In the corn futures contract a number of different types of corn can be delivered and there is a number of different delivery locations. The types and locations are chosen by a seller. Which of the following is true
a.
This flexibility tends increase the futures price.
b.
This flexibility tends decrease the futures price.
c.
This flexibility may increase and may decrease the futures price.
d.
This has no effect on the futures price
e.
None of the above
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