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elf_fu elf_fu
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Posts: 705
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6 years ago
Given a 25% chance of a 600,000 bushel yield and a 75% chance of a 500,000 bushel yield, what quantity should the farmer hedge in order to protect against an uncertain harvest? Assume the farmer is willing to take reasonable risk.
A) 0
B) 500,000
C) 525,000
D) 600,000
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
Read 321 times
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phuongha2892phuongha2892
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Posts: 471
6 years ago
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elf_fu Author
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6 years ago
Thank you Heavy Heart
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