Assume that General Mills, a user of wheat, and wheat farmers have the same distributional assumptions about

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Assume that General Mills, a user of wheat, and wheat farmers have the same distributional assumptions about future wheat prices. Does a futures contract make economic sense from both points of view? If yes, why?

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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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Question Posted: Jun 10, 2015 05:38 AM

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Assume that General Mills, a user of wheat, and wheat farmers have the same distributional assumptions about

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Yes Farmers need to be assured that they can sell their crops at harvest time regardless of market c...View the full answer

Modern Portfolio Theory and Investment Analysis

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