The farmer does not avoid risk by selling canola futures. If canola prices stay above $580 per

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"The farmer does not avoid risk by selling canola futures. If canola prices stay above $580 per tonne, then he will actually have lost by selling canola futures at $580." ls this a fair comment?

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Fundamentals Of Corporate Finance

ISBN: 9781259087585

6th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts

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Question Posted: Jul 12, 2019 11:19 AM

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The farmer does not avoid risk by selling canola futures. If canola prices stay above $580 per

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The object of hedging is to eliminate risk If you eliminate risk you will eliminate the happ...View the full answer

Fundamentals Of Corporate Finance

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