Sugar Is Currently Selling for

question 70

Multiple Choice

Sugar is currently selling for $.201 a pound while the 6-month futures price is $.208. You take a long position in the 6-month sugar futures. Which one of the following prices would cause you the greatest loss if that price turns out to be the actual price of sugar per pound 6 months from now?

• A)$.198
• B)$.201
• C)$.205
• D)$.208
• E)$.211

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Definitions:

Low-pressure Air Mass

A region of the atmosphere where the air pressure is lower than surrounding areas, often resulting in cloudy weather and precipitation.

Temperate Deciduous Forests

Forests located in temperate zones featuring trees that lose their leaves seasonally and are adapted to handle cold winters and warm summers.

Coniferous Forests

Forest ecosystems dominated by cone-bearing trees such as pines, firs, and spruces, primarily found in cooler climates.

Higher Latitudes

Regions of the Earth closer to the poles, characterized by colder temperatures and, in many cases, unique ecological conditions.