Theoretical Yield: Example 1 - Chemistry
In Example 2, the futures price still declines to $2.50, lower than in the fi rst example. However, the actual yield is now 160 bushels, equal to the APH yield. Actual revenue is 160 bushels multi-plied by the harvest price of $2.50, or $400 per acre. Subtracting the actual revenue from the revenue guarantee results in indemnity payments of ... ................
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