The farmer does not avoid risk by selling wheat futures. If wheat prices stay about $2.80 a

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“The farmer does not avoid risk by selling wheat futures. If wheat prices stay about $2.80 a bushel, then he will actually have lost by selling wheat futures at $2.50.” Is this a fair comment?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 06:16 AM

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The farmer does not avoid risk by selling wheat futures. If wheat prices stay about $2.80 a

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