You Expect to Deliver 250,000 Bushels of Corn to the Market

question 59

Multiple Choice

You expect to deliver 250,000 bushels of corn to the market in July. Today, you hedge your position at the closing price as shown in the table. Assume that the market price turns out to be 248.7 at the
Time you make your delivery in July. How much income will you receive in total from the hedged
Delivery of your corn?
Corn - 5,000 bu.; cents per bu.

• A) $621,750
• B) $624,500
• C) $629,250
• D) $630,250
• E) $631,000

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