You Are a Grain Exporter and Need to Acquire 160,000

question 287

Multiple Choice

You are a grain exporter and need to acquire 160,000 bushels of soybeans for export next month. Futures contracts are for 5,000 bushels and are quoted at 7.50 per bushel. If you want to hedge your cost risk, what should you do?

• A) Buy 32 contracts at a current contract value of $240.
• B) Buy 32 contracts at a current contract value of $1,200,000.
• C) Sell 32 contracts at a current contract value of $1,040,000.
• D) Sell 32 contracts at a current contract value of $1,200,000.
• E) Buy 32 contracts at a current contract value of $1,040,000.

Evaluate the morality of actions based on their consequences for everyone affected and understand the significance of the greatest good for the greatest number.

Appreciate the importance of legal and ethical standards in determining what is considered white collar crime.

Understand the different types of justice (distributive, procedural) and their relevance in ethical decision-making and societal norms.

Understand the principles and conceptual differences among major ethical philosophies including teleology, deontology, egoism, and utilitarianism.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.

Loanable Funds

The total resources or funds available for borrowing in the financial markets, encompassing both savings and any additional credit provided by banks.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Uninsurable Risks

refers to risks that insurance companies are unwilling to cover due to their unpredictable or potentially catastrophic nature.