Which of the Following Players Would Require a Put Option

question 3

Multiple Choice

Which of the following players would require a put option in order to hedge their natural position in the market?

• A)A farmer who buys corn to feed his livestock
• B)A farmer who sells peanuts to a chocolatier
• C)A farmer who has financed his land with a floating rate mortgage
• D)A miller who buys wheat from a farmer

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Situational Interview

An interview technique where candidates are asked to describe how they would handle specific job-related situations or challenges.

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