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Soru 1 Company Z wishes to hedge its exposure to cotton with corn futures over the next three months. The market price of cotton per
Soru 1 Company Z wishes to hedge its exposure to cotton with corn futures over the next three months. The market price of cotton per ton and future price of corn per ton for 8 months are given. The company has an exposure to the price of 1000 tons of the cotton. Each futures contract is on 42 tons of corn. How many corn contracts should be traded? (Answer is rounded) Corn future price per Cotton price per Month ton ton 1 185 1850 2 191 1865 3 195 1867 4 187 1850 5 189 1890 6 192 1898 7 195 1902 8 200 1910 Yantnz: 88 48 99 24
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