Question

The Chicago Mercantile Exchange has announced the introduction of a financial instrument that is based on rainfall in the state of Illinois. The standard agreement states that for each inch of rain over and above the average rainfall for a particular month, the seller will pay the buyer $1,000. This instrument could be sold by someone who ___________ from above average rainfall, and someone who ______________ by above average rainfall should buy the contract.

Answer 1

benefits , is harmed

Step-by-step explanation:

According to the standard agreement each inch of rain over and above the average rainfall for a particular month, the seller will pay the buyer $1,000

therefore,

This instrument could be sold by someone who benefits from above average rainfall, and someone who is harmed by above average rainfall should buy the contract.