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You manage a food company. The company will need 6 5 0 , 0 0 0 bushels of soya bean in 3 months. The 3

You manage a food company. The company will need 650,000 bushels of soya bean in 3 months. The 3 months futures price is $5.00. You are afraid the cash price may rise above $5.00. One futures contract is for 5,000 bushels. What can you do in the futures market to avoid price risk?
sell 650 contracts
buy 130 contracts
sell 26 contracts
buy 650 contracts
buy 26 contracts
sell 130 contracts
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