In the Corn Futures Contract a Number of Different Types

question 8

Multiple Choice

In the corn futures contract a number of different types of corn can be delivered (with price adjustments specified by the exchange) and there are a number of different delivery locations.Which of the following is true

• A) This flexibility tends increase the futures price.
• B) This flexibility tends decrease the futures price.
• C) This flexibility may increase and may decrease the futures price.
• D) This flexibility has no effect on the futures price

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Definitions:

Cakes

Baked goods made from ingredients such as flour, sugar, eggs, and butter, often prepared and decorated for special occasions.

Average Total Cost

The total cost of production divided by the total quantity of output produced.

Mixers

Devices or software used to combine multiple audio signals into one or more output channels.

Cakes

Baked confections made from ingredients like flour, sugar, and eggs, often sweetened and served as a dessert or for special occasions.