A farmer plans to sell 800 bales of greasy wool (21 micron) in four weeks time.The current spot price is 1300 for a contract of 20 bales and the eight week futures price is 1320 (20 bales per contract) .If the farmer hedges how many futures contracts should be purchased?
A) 50
B) 49
C) 39
D) 28
Correct Answer:
Verified
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