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hi welcome to my video on an example of an options hedge now theres an introduction video that you may want to make sure that youve watched first but in this example were going to take a look at a buyer of corn and how they might hedge but in this time in this case were gonna look at it from an options hedge perspective now being a cue learner make sure that you take notes along the way Im gonna review the information I have but you need to write it down so that you can see how we obtain the information or whats important are the sick a look all right again we are a buyer of corn and in my example again write this down today is April and we have risk all the way to August so April May June July and then in August about five months away we will actually need to go ahead and purchase corn for lets just say our feed mill operation but right now our feed mill bins are full we dont have the capacity so we are sitting out there in the cash price looking to see what it might cost us
