A Farmer Stores His Fall Harvest of Corn and Sells

question 37

Multiple Choice

A farmer stores his fall harvest of corn and sells corn futures for March delivery at $2.50 per bushel.In March the spot price of corn is $2.20 per bushel.Which of the following is correct?

• A) The farmer is obligated to deliver corn to the futures buyer at $2.20.
• B) The farmer has locked in an effective price of $2.50 per bushel.
• C) The farmer would have been better off without the futures contact.
• D) The farmer will receive $4.70 per bushel, which more than doubles the profit obtained without futures.

---

Definitions:

Adulthood

The period in human life after adolescence, characterized by mature age, typically involving greater responsibility and independence.

Individualized Teaching

An educational approach that tailors instruction to accommodate individual students' learning needs, abilities, interests, and pace.

Educational Strategy

A plan or method implemented to facilitate learning and enhance the understanding and retention of knowledge.

BMI

Body Mass Index, a measurement derived from a person's weight and height to assess body fat and overall health.