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Agricultural inputs are peculiar in nature as an asymmetry in their roles can be identified during the production process. These inputs can be grouped into a set of growth inputs or a set of facilitating inputs. The inputs affecting biological or physiological growth from the inside of the plant...
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. Here the holder of the envelope is allowed to buy insurance and so realize the expected pay-off. Pricing the insurance … premium fairly shows that the expected pay-off is the amount in the envelope. It is shown that pricing the insurance option …
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