If you are a large farm in California that needs water to irrigate your crops. How would

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If you are a large farm in California that needs water to irrigate your crops. How would you use the contract to hedge the cost of water?

Provide a simple example of how a hedge to protect an increase in the price of water would be designed and executed (keep in mind how the contract settles)?

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Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets

ISBN: 978-0078024061

5th edition

Authors: Frederick S. Hillier, Mark S. Hillier

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Posted Date: Jun 08, 2023 01:51 AM

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If you are a large farm in California that needs water to irrigate your crops. How would

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As a large farm in California you can use a contract to hedge the cost of water by entering into a futures contract or a forward contract These contra... View the full answer

Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets

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