Computation of future contract value

Reference no: EM139634

Computation of future contract value.

A farmer enters into a short corn futures contract at a price of $2.80 per bushel. The spot price of corn drops to $2.65 when the contract expires and the farmer delivers her corn. If the farmer harvested 13,000 bushels of corn and had futures contracts on 10,000 bushels of corn, describe the farmer's net proceeds when corn is sold?

Reference no: EM139634

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