The price of wheat at the time of harvest in three months, Financial Management

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The price of wheat at the time of harvest in three months

Suppose you are a wheat farmer. You expect a new harvest of wheat three months from today. The price of wheat at the time of harvest in three months is uncertain. How can the farmer avoid the price risk?

Suppose you are a miller. You need to purchase wheat in three months from today. You are faced with the price risk, too. How can you have insurance for the price risk.

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Financial Management: The price of wheat at the time of harvest in three months

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