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You produce wheat for sale, you will have 105,000 bushels of wheat to sell at the end of August 2022. You are worried about the
You produce wheat for sale, you will have 105,000 bushels of wheat to sell at the end of August 2022. You are worried about the price declining by the time you sell your wheat. i. How would you hedge this position with forwards/futures? ii. Discuss the pros and cons of using forwards, futures, and options for hedging. iii. How would uncertainty about the amount of wheat that you think you will produce affect your hedging decisions?
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