9. It is May, and a farmer will soon plant her sorghum. The sorghum will be har
Question:
9. It is May, and a farmer will soon plant her sorghum. The sorghum will be har vested in November. She wants to hedige her sorghum, but there are no sorghum futures contracts. Explain how she can cross-hedge her sorghum and why the cross-hedge works. You will be graded on the clarity, accuracy, and completeness of your answer.
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Jehal Shah
I believe everyone should try to be strong at logic and have good reading habit. Because If you possess these two skills, no matter what difficult situation is, you will definitely find a perfect solution out of it. While logical ability gives you to understand complex problems and concepts quite easily, reading habit gives you an open mind and holistic approach to see much bigger picture.
So guys, I always try to explain any concept keeping these two points in my mind. So that you will never forget any more importantly get bored.
Last but not the least, I am finance enthusiast. Big fan of Warren buffet for long term focus investing approach. On the same side derivatives is the segment I possess expertise.
If you have any finacne related doubt, do reach me out.
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