Question: a) What are the motivational differences between arbitrageurs, speculators and hedgers in the futures market? b) A corn farmer argues, I do not use futures

a) What are the motivational differences between arbitrageurs, speculators and hedgers

a) What are the motivational differences between arbitrageurs, speculators and hedgers in the futures market? b) A corn farmer argues, "I do not use futures contracts for hedging. My real risk is not the price of corn. It is that my whole crop gets wiped out by the weather." Discuss this viewpoint. Should the farmer estimate her expected production of corn and hedge to try to lock in a price for the expected production

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