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you are the buyer for a cereal company. you think you will need 120,000 bushels of corn next month. The futures contracts on corn are

you are the buyer for a cereal company. you think you will need 120,000 bushels of corn next month. The futures contracts on corn are based on 5,000 bushels and are currently quoted at 416'0 cents per bushel for delivery next month. if you want to hedge your cost, you should _ contracts at a current value of _ per contract. a) buy 12; $499,200 b) buy 24; $20,800 c) buy 24; $499,200 d) sell 12; $20,800 e) sell 24; $499,200

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