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Suppose you are a wheat farmer. You expect a new harvest ofwheat three months from today. The price of wheat at the time ofharvest in three months is uncertain. How can the farmer avoid theprice risk?Suppose you are a miller. You need to purchase wheat in threemonths from today. You are faced with the price risk, too. How canyou have insurance for the price risk?
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Let's now move one step ahead and download Microsoft's historical price data from Yahoo Finance...
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