Long corn futures can help corn buyer to avoid paying storage cost. True False

Expert Solution

This is TRUE

Long future in case of a commodity means that the buyer is expecting the price to rise in the future. So. the buyer can enter into a contract to purchase the corn at a certain price on a specific date without having to actually purchase and store the corn before the contract expiry date. This helps the buyer avoid paying storage cost as well.

jeff jeffy answered 2 years ago

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