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Question
You, a farmer, anticipate taking 80,000 bushels of soybeans to the market in three months. The current cash price for soybeans is $5.85. The size of the futures contract is 5,000 bushels per contract, and the current three-month futures price is $5.88. If you wanted to hedge one-half of your exposure to a drop in the value of soybeans, how many futures contracts would you buy or sell?A.Sell 16 futures contracts
B.Buy 16 futures contracts
C.Sell 8 futures contracts
D.Buy 8 futures contracts
E.Sell 4 futures contracts
Answer
This answer is hidden. It contains 162 characters.
Related questions
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