Question

Patterson Farms grows corn used in the production of ethanol, which is used as a gasoline additive. Each year, the firm plants thou-sands of acres of corn, which is eventually harvested and sold to ethanol plants. How can corn futures contracts be used by Patterson to reduce the risk of its operations? Can futures contracts be used to eliminate all the risk that Patterson faces? Discuss.


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  • CreatedNovember 13, 2015
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