A farmer sells futures contracts at $2.95 per bushel of corn. The spot price of corn is

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A farmer sells futures contracts at $2.95 per bushel of corn. The spot price of corn is $2.65 at contract expiration. The farmer harvested 10,000 bushels of corn and sold futures contracts on 10,000 bushels of corn.

A. What are the farmer's proceeds from the sale of corn in the spot market?

B. what are the farmer's proceeds from the sale of corn in the spot market and hedging sales with the futures contracts?

C. by hedging sales with the futures contracts, the farmer can lock the corn price in _____________?

Related Book For answer-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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Posted Date: Apr 12, 2023 04:10 AM

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A farmer sells futures contracts at $2.95 per bushel of corn. The spot price of corn is

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Financial Reporting and Analysis

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