How much will the producers account be accredited

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Question - A small soybean grower expects to harvest two fifty hundred thousand bushels in four months. The current cash price for the crop is $4.25 per bushel. The soybean futures contract that matures in four months is currently trading at 425.  Each contract is for 5,000 bushels. Show all work.

Required -

a. How many contracts should the grower trade to hedge the crop price risk?

b. How much is each contract worth?

c. How much will the producers account be accredited?

Reference no: EM133184707

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