How Might a Firm Such as General Mills Use Options

question 45

Multiple Choice

How might a firm such as General Mills use options to control raw material prices for breakfast cereals?

• A) Buy call options on commodities
• B) Sell call options on commodities
• C) Buy put options on commodities
• D)Sell put options on commodities

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Definitions:

Oxytocin

A hormone produced in the brain that plays a significant role in social bonding, reproduction, childbirth, and the period after childbirth.

Sexual Dysfunction

Problems that prevent an individual from experiencing satisfaction from sexual activity.

Sexual Intercourse

A biological and physical activity involving genital contact between individuals that can result in sexual pleasure and, in humans, often reproduction.

Fetishism

A type of sexual preference or desire in which gratification is linked to a particular object, item of clothing, or part of the body not conventionally viewed as sexual.