Question: Problem 23-13 Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is

 Problem 23-13 Farmer Brown grows Number 1 red corn and would

Problem 23-13 Farmer Brown grows Number 1 red corn and would like to hedge the value of the coming harvest. However, the futures contract is traded on the Number 2 yellow grade of corn. Suppose that yellow corn typically sells for 94% of the price of red corn. If he grows 122,200 bushels, and each futures contract calls for delivery of 5,000 bushels, how many contracts should Farmer Brown buy or sel hedge his position? (Round your final answer to the nearest whole number.) Number of contracts es

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