Mr. Chavez is a plantain farmer in Venezuela. Plantains are similar to bananas, but not identical. Chavez expects to harvest 100,000 plantains this season. Chavez's harvest will be ready in about 6 months. Chavez is concerned about the global price of plantains. Is it possible for Chavez to hedge his exposure to fluctuations in plantain prices if the following futures contracts are available? if so, what is Chavez's hedging strategy and why does it reduce Chavez's exposure to plantain prices? What are the limitations of this hedging strategy? How can Chavez potentially improve the hedge? Underlying Assets Futures Price Maturity Bananas Pineapples Oranges 0.5 USD/banana 2 USD/pineapple 1 USD/orangle 6 months 6 months 6 months Size of each contract 10,000 bananas 20,000 pineapples 25,000 oranges Mr. Chavez is a plantain farmer in Venezuela. Plantains are similar to bananas, but not identical. Chavez expects to harvest 100,000 plantains this season. Chavez's harvest will be ready in about 6 months. Chavez is concerned about the global price of plantains. Is it possible for Chavez to hedge his exposure to fluctuations in plantain prices if the following futures contracts are available? if so, what is Chavez's hedging strategy and why does it reduce Chavez's exposure to plantain prices? What are the limitations of this hedging strategy? How can Chavez potentially improve the hedge? Underlying Assets Futures Price Maturity Bananas Pineapples Oranges 0.5 USD/banana 2 USD/pineapple 1 USD/orangle 6 months 6 months 6 months Size of each contract 10,000 bananas 20,000 pineapples 25,000 oranges