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A Wheat Farmer Should ________ in Order to Reduce His

Question 2

Multiple Choice

A wheat farmer should ________ in order to reduce his exposure to risk associated with fluctuations in wheat prices.


A) sell wheat futures
B) buy wheat futures
C) buy a contract for delivery of wheat now and sell a contract for delivery of wheat at harvest time
D) sell wheat futures if the basis is currently positive and buy wheat futures if the basis is currently negative

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