On March 1 the Price of a Commodity Is $1,000

question 19

Multiple Choice

On March 1 the price of a commodity is $1,000 and the December futures price is $1,015.On November 1 the price is $980 and the December futures price is $981.A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1.It closed out its position on November 1.What is the effective price (after taking account of hedging) received by the company for the commodity?

• A) $1,016
• B) $1,001
• C) $981
• D) $1,014

---

Definitions:

Health And Wellness

A holistic approach to maintaining physical, mental, and emotional well-being.

Chronic Disease

A long-term health condition that persists for months or years, such as diabetes, arthritis, or heart disease.

Risk Factor

An attribute, characteristic or exposure that increases the likelihood of developing a disease or injury.

Preventive Safety

Measures and practices implemented to reduce the risk of accidents, injuries, or other adverse events before they occur.