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

question 265

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

---

Definitions:

Communicating

The process of conveying information or expressing thoughts and feelings from one entity or group to another through the use of mutually understood signs, symbols, or behavior.

Humanlike Language

Refers to forms of communication that possess characteristics or complexities similar to human language, including syntax, grammar, and the capacity for abstract expression.

Language-like Behavior

Actions or patterns of vocalization that resemble or mimic the structure and usage of formal language.

Neurogenesis

The formation of new neurons; occurs primarily during prenatal development but may also occur at lesser levels in some brain areas during adulthood.