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You are a consultant in risk management. a) If a corn farm wants to lock in a sell price for his 100,000 bu of corn
You are a consultant in risk management.
a) If a corn farm wants to lock in a sell price for his 100,000 bu of corn anticipated to harvest. Should you suggest him to sell/short or buy/long corn futures?
b) How many contracts to sell or buy given that the size is 5000 bu?
c) If a producer/buyer needs 1,000,000 bu of corn, how would you answer a) and b)
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