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Suppose today is February 12, 2022, and your farm produces corn. You expect to harvest and sell 250,000 bushels of corn in May 2022. You

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Suppose today is February 12, 2022, and your farm produces corn. You expect to harvest and sell 250,000 bushels of corn in May 2022. You would like to lock in your price today because you are concerned that corn prices might go down between now and May. To hedge your risk exposure, should you hold a long position or a short position in the futures contracts? How many contracts do you need? Note that each corn futures contract is for 5,000 bushels. Assume that the sensitivity of the corn prices to the S\&P500 index is 0.3 . Long 25 contracts Short 25 contracts Long 50 contracts Short 50 contracts None of the above

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