Posted: December 30th, 2021
1. You decide in May that the coming summer’s corn crop will be much larger and the fall corn price consequently much lower than most people expect.
A. To act on your beliefs, should you buy or should you sell December corn futures? (Futures are contracts to buy or sell at a future date at a price established now.)
B. If a substantial number of knowledgeable people come to share your opinion about the size of this summer’s crop, what will happen to the price of December corn futures?
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