At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

A farmer and an investor negotiate a Futures Contract where Tomatoes will be sold
at $12 per bushel in 6 months... Who benefits if prices rise to $15 per bushel?




Sagot :

If prices rise to $15 from the original $12 it was at in 6 months, the person that benefits between the investor and the farmer will be the Investor.

Why would the investor benefit?

The investor has fixed the price of the tomatoes to $12 when  they purchase it in 6 months.

This means that the new price of the tomatoes will not affect them and they will still spend less than the market price of $15 when they eventually purchase the tomatoes.

In conclusion, the investor benefits.

Find out more on Futures Contracts at https://brainly.com/question/1193397.