You Expect to Deliver 60,000 Bushels of Wheat to the Market

question 151

Multiple Choice

You expect to deliver 60,000 bushels of wheat to the market in September. Today, you hedge your position by selling futures contracts on half of your expected delivery at the final price of the day. Assume that the market price turns out to be 495*5 at the time you make your delivery in September. How much more or less would you have earned if you had not bought the futures contracts?

Wheat - 5,000 bu.: cents per bu.

• A) $24,000 less
• B) $2,400 less
• C) $0 more or less
• D) $2,400 more
• E) $24,000 more

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Definitions:

Electronic Protection

The use of electronic devices or systems to protect circuits and equipment from damage due to electrical faults, overloads, or short circuits.

Suspend Instruction

A command used in programming to temporarily halt a process or routine until a specified condition is met or a certain time has passed.

Specific Conditions

Particular or unique states or circumstances that apply in a given scenario, often determining the outcome of conditional operations or decision-making processes.

Contact Histogram

An instruction sequence that monitors a designated memory bit or a designated input or output point for a change of state. A listing is generated by the instruction sequence that displays how quickly the monitored point is changing state.