You Are the Purchasing Agent for a Food Producer

question 149

Multiple Choice

You are the purchasing agent for a food producer. You anticipate that your firm will need 160,000 bushels of oats in March. You decide to hedge your position today and did so at the closing price of
The day. Assume that the actual market price turns out to be 174.6 on the day you actually buy the
Oats. By buying the contract you:
Oats - 5,000 bu.; cents per bu.

• A) Saved $1,080.
• B) Saved $3,040.
• C) Saved $4,800.
• D) Spent an additional $1,080.
• E) Spent an additional $3,040.

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Definitions:

Social System

A complex set of human relationships interacting in many ways within a community or society, governed by their own norms and structures.

Cognitive Therapy

A form of psychotherapy that emphasizes the role of thought patterns and beliefs in influencing behavior and emotions, aiming to change cognitive distortions and maladaptive thinking to improve mental health.

Self-help Groups

Peer-led organizations where members share common experiences, challenges, or conditions to provide mutual support and aid.

Eating Disorders

Psychological disorders characterized by abnormal or disturbed eating habits that negatively affect a person's health and well-being.