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Author Question: Seth McDonald grows corn. In May, he decides to sell 3 contracts, about half of his expected crop, ... (Read 102 times)

hgjjghgjh

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on: Mar 29, 2022
Seth McDonald grows corn.  In May, he decides to sell 3 contracts, about half of his expected crop, for December delivery.  The contract price is $3.65 per bushel and the contract size is 5,000 bushels.  Shortly before the delivery date, corn is selling in the spot (immediate delivery) market for $3.85 per bushel.
◦ Seth will simply let the contract expire and sell his corn in the spot market.
◦ Seth can protect his profit by buying an offsetting contract.
◦ Seth has an opportunity loss of $3,000 because he must deliver corn at the lower price.
◦ Seth can hold on to his corn for several months and hope that the price to rises enough to offset his loss.
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Marked as best answer by hgjjghgjh on Mar 29, 2022

KAyteeBee1129

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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hgjjghgjh

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Reply 2 on: Mar 29, 2022
Thanks for the timely response, appreciate it

yeungji

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Reply 3 on: Yesterday
Excellent

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