1) Louisa is a corn farmer in Illinois. She anticipates a harvest in August of 3 million...

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1) Louisa is a corn farmer in Illinois. She anticipates a harvest in August of 3 million bushels of yellow corn. Today is May. Louise plans to hedge her sale of corn in August using corn futures contracts. Each contract has 5,000 bushels of yellow corn as the underlying asset. What is the most reasonable hedge ratio for Louisa's hedge?

Posted Date: May 11, 2024 02:03 AM

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1) Louisa is a corn farmer in Illinois. She anticipates a harvest in August of 3 million...

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