Farmer Ted Planted 200 Acres in Wheat This Year

question 31

Multiple Choice

Farmer Ted planted 200 acres in wheat this year. The weather has been perfect and he expects to harvest a record crop within the next two weeks. At present, he has no storage facilities and therefore must sell his crop as soon as it is harvested. Which one of the following risks is he facing because he must sell his crop at whatever the market price is at harvest time?

• A) Futures risk
• B) Volatility exposure
• C) Economic exposure
• D) Transactions exposure
• E) Translation exposure

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Definitions:

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Imperial Family

The royal family of an empire, consisting of the emperor or empress and their relatives, often holding significant political and social influence.

Trabeated System

An architectural system that uses horizontal beams or lintels, which are supported by posts or columns, chiefly used in ancient Greek and Roman architecture.

Arcuated System

An architectural system that uses arches, vaults, and domes to span spaces, characteristic of Roman and Gothic architecture.