You are a wheat farmer and are concerned that the price of wheat has been...
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You are a wheat farmer and are concerned that the price of wheat has been very volatile recently. Prices seem good now, but you don't expect to sell this year's harvest until September 2021. Explain how would you use the futures market to protect you against price movements. Be sure to indicate if you would be long or short and how the futures transaction would work if prices move up and if prices move down between now and September 2021.
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