How Does a Soybean Farmer Lock in a Price of $5.40

question 86

Multiple Choice

How does a soybean farmer lock in a price of $5.40 per bushel when the cash price at harvest is only $4.90?

• A) Profit in futures market to offset loss in cash market by selling futures contract at $5.40/bushel.
• B) Break even in both markets by buying a futures contract at $5.40/bushel.
• C) Profit in cash market to offset loss in futures market by buying futures contract at $5.40/bushel.
• D) Break even in both markets by selling a futures contract at $5.40/bushel.

Utilize web notes and annotations for personal or professional purposes.

Understand the concept and functionalities of the semantic web.

Explore different methods of managing multiple webpages through tabs.

Interpret the benefits of using predictive browsing and how it enhances the user experience.

---

Definitions:

SAT Scores

SAT Scores are standardized test results used for college admissions in the United States, assessing mathematical, reading, and writing skills.

Standard Deviation

A measure of dispersion or variability that quantifies how much individual data points deviate from the mean of a dataset.

Normally Distributed

Referring to a bell-shaped curve distribution where data are symmetrically distributed around the mean, implying most data points are close to the mean and fewer are near the extremes.

Automobile Battery

A rechargeable battery that supplies electrical energy to a motor vehicle, primarily used for starting the engine and powering accessories.