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riadik2000 [5.3K]
2 years ago
10

A farmer and an investor negotiate a Futures Contract where Tomatoes will be sold

Business
1 answer:
gogolik [260]2 years ago
8 0

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 <u>Investor</u>.

<h3>Why would the investor benefit?</h3>

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 brainly.com/question/1193397.

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According to empirical research, in countries where stockholders' rights are strong, firms issue ____ stock than in countries wh
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A <u>Moral hazard</u> is said to have occurred when one party (i.e insured Party) increases its exposure to risk  ,because some other party bears the cost of those Risk.It reflects the tendency of a person to take more risk as the consequence of the risk taken has to be beard by some other party

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<u />

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