Question
In the corn futures contract, a number of different types of corn can be delivered (with price adjustments specified by the exchange) and there are
In the corn futures contract, a number of different types of corn can be delivered (with price adjustments specified by the exchange) and there are a number of different delivery locations. Which of the following is true?
A. This flexibility tends to increase the futures price because the buyer makes the choice.
B. This flexibility tends to decrease the futures price because the buyer makes the choice.
C. This flexibility tends to increase the futures price because the seller makes the choice.
D. This flexibility tends to decrease the futures price because the seller makes the choice.
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