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Stan owns over 10,000 acres of wheat. The crop this year is abundant and will be ready for harvesting next month. Stan likes the market
Stan owns over 10,000 acres of wheat. The crop this year is abundant and will be ready for harvesting next month. Stan likes the market prices today but expects the prices to decline over the next month as the supply of wheat increases. Which one of the following positions should Stan take to hedge his wheat crop?
A) buy in the spot market today |
B) take a long futures position |
C) take a short futures position |
D) sell in the spot today and take a long position in the futures market |
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