Described the situation of a feedlot owner

Reference no: EM131305275

An article in the Wall Street Journal discussing the fear that some farmers had that regulation of derivatives would make it harder for them to hedge risk, described the situation of a feedlot owner who "uses derivatives to hedge the price he pays for feed and the price he gets for steers."

How would this feedlot owner use futures contracts to hedge these price risks?

Reference no: EM131305275

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