What is your effective purchase price for corn

Reference no: EM13258942

Suppose it is May 23 and you expect to have purchase 32000 bushels of corn in December. You like the December corm futures price on May 23rd which is 624'0. What position do you take? How many December contracts will you open? Are you completely hedging your position and why? If you are completely hedged are you speculating in corn and why? If the spot price of corn settles at $6.50/bushel in December, what is your effective purchase price for corn?

Reference no: EM13258942

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