You Would Like to Lock in the Selling Price on 50,000

question 14

Multiple Choice

You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899΄4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.

• A)$45,637.50
• B)$541,650.00
• C)$449,750.00
• D)$297,700.50
• E)$2,977,000.25

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Definitions:

Physiological

Pertaining to the functions and activities of living organisms and their parts, including all physical and chemical processes.

Safety and Security

The state of being free from danger or threat and having measures in place to protect against harm.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to achieve certain needs and that some needs take precedence over others, structured in a hierarchy from physiological needs to self-actualization.

Esteem

Refers to the respect, admiration, and recognition an individual receives from others, and also encompasses self-esteem, which is an individual's perception of their own worth.