A Cereal Company Generally Enters into a Forward Contract in Wheat

question 84

Multiple Choice

A cereal company generally enters into a forward contract in wheat as a:

• A) Hedger.
• B) Speculator.
• C) Spot trader.
• D) Broker.
• E) Spectator.

---

Definitions:

Mortality

The state of being subject to death; often used in statistics to describe the number of deaths within a population over a given period.

Measles

A highly infectious viral illness known for causing a rash, fever, and cough, and is preventable through vaccination.

Sudden Infant Death Syndrome (SIDS)

The unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.

Malabsorption Defect

A condition where the small intestine cannot absorb nutrients properly from food.