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Luke Owns a Large Farming Operation That Encompasses Over 5,000

question 55

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Luke owns a large farming operation that encompasses over 5,000 acres of corn. The crop this year is abundant and will be ready for harvesting next month. Luke likes the market prices today but expects the prices to decline over the next month as the supply of corn increases. Which one of the following positions should Luke take to hedge his corn crop?


Definitions:

Sustainable Timber

Timber harvested in a way that maintains the long-term health and biodiversity of the forest, ensuring a continuous supply of wood.

Ramsar Sites

Wetland sites designated to be of international importance under the Ramsar Convention, aimed at conserving biological diversity and promoting sustainable use of wetlands.

Waterfowl Management

The practice of preserving and regulating habitats and populations of aquatic birds for ecological balance and human recreation.

Marine Sanctuaries

Marine sanctuaries are protected areas of seas, oceans, or large lakes, which are set aside to conserve marine life and its habitat.

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