A farmer expects to harvest 800,000 bushels of corn. To eliminate price risk, the farmer elects to short corn futures. What would cause the farmer to short only 720,000 bushels of corn?

A) Basis risk
B) Illiquid futures markets
C) Margin requirements
D) Quantity uncertain


D

Business

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Indicate whether the statement is true or false.

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What will be an ideal response?

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