Great Lakes Farm agreed this morning to sell General Mills 25,000 bushels of wheat six months from now at a price per bushel of $9.75. This is an example of a:

Question

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This is a forward contract, where two parties agree to buy or sell an asset at a specific price at a future date. The agreement between Great Lakes Farm and General Mills is a forward contract for the sale of wheat at a specified price and a future date.

Great Lakes Farm Agreed This Morning to Sell General Mills