A farmer sells futures contracts at a price of $3.65 per bushel. The spot price of corn is $3.15 at contract expiration. The farmer harvested 21000 bushels of corn and sold futures contracts on 20000 bushels of corn. What are the farmer's proceeds from the sale of ALL the corn?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A farmer sells futures contracts at a price of $3.65 per bushel. The spot price of corn is $3.15 at contract expiration. The farmer harvested 21000 bushels of corn and sold futures contracts on 20000 bushels of corn.

What are the farmer's proceeds from the sale of ALL the corn?

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A contract that makes a buyer purchase the underlying asset at a predetermined price is term as the futures contract.

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