Business Finance Homework Help

From Chapter 3 P.19-41.pdf , consider The Futures Position on page 40.

Create an Influence Diagram for the decision of whether or not a farmer should purchase a Futures Contract for his corn crop.  For each influencer, make a list of the assumptions that must be made and how each one will impact the potential profit the farmer may make.

For example, one obvious influencer is Rain. The assumptions are either 

a) there will be sufficient rain during the growing season and a bountiful crop 

or b) there will be no rain and a poor crop.

Present your findings in a Powerpoint presentation.