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How Much Would a Farmer Receive from Hedging

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A farmer anticipates harvesting 50,000 bushels of wheat in September. How much money would the farmer receive from hedging by selling eight contracts of September wheat at a settlement price of $6.32 per bushel (a) today and (b) delivery?

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The expert calculates cash flow when futures contracts are sold.

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A farmer anticipates harvesting 50,000 bushels of wheat in September. How much money would the farmer receive from hedging by selling eight contracts of September wheat at a ...

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