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Sec. 2. Hedging as the justification of future trading-

Hedging in relation to scale of operations.

General significance of hedging--

Hedging in relation to periodicity of supply

The part of the speculator---

3. Illustrations of hedging by specific concerns.

Life of open trades for elevators and mills_

Computed average life of open trades_---

Indicated volume hedged--

Use of various markets -

Use of the options_---

4. Hedging practices of flour mills_-

General policies--

Hedging by mills in various geographical sections_.

Minneapolis practice.

Opposing theories on mill hedging-

5. The use of futures by exporters--

General characteristics of exporters' hedges.

Other uses of futures by exporters_

6. Commercial and territorial extent of hedging--

Sources of hedging with reference to its distribution among

dealers

Country elevators—Northwest contrasted with Southwest-

Other conditions

Hedging to protect third parties.--.

Proportion of hedging country elevators by States..

7. Strict-rule hedging

Equating the quantity of cash and future commitments..

Simultaneity of opposite transactions_

Waiting for a price----

Net position of a large mill from week to week..

November 30 position data---

Extent of hedging by rule----

The argument from averaging-

Hedge market --

Relation of the opportunity to hedge to price fluctuations.-

8. Commercial judgment and hedging--

Hedging practices in relation to expected price changes..

Hedging in relation to discounts on futures..

Hedging in relation to visible supplies.-

Policies of a large elevator merchandiser-.

Other methods_-

Hedging as a sort of spreading-

The shifting of hedges----

The choice of a futures market.

The choice between options----

9. Substitutes for hedging in futures_

To arrive sales.--

Synchronized cash purchases and cash sales.

Economy in utilizing future sales..

10. Border-line hedging-

Substitution of futures for cash grain holdings_

Contracting the crop ahead..

“Overhedging" and cognate speculation.

11. Conditions for the correct functioning of hedging-

General considerations.--.

Hedging risks and losses compared with mercantile risks and

losses.--

Insurance different from hedging-----

12. Hedges as a means of obtaining and disposing of grain.

Relation of hedging to deliveries on futures.-

Instance of large deliveries on hedge sales.-

Taking delivery on hedge purchases ---

13. Services and costs of hedging---

Stabilization of profits---

Hedging in the service of competition.-

The price paid for the hedging service_-

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