What investment would be a hedge for a corn farmer?
A)Long corn put option
B)Long corn call option
C)Long corn futures
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

A long corn put option would be a hedge for a corn farmer because it gives them the right to sell corn at a specific price, which can help protect them against price drops. This would help offset any potential losses in the event that the price of corn decreases.

What Investment Would Be a Hedge for a Corn Farmer