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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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