A Farmer Can Hedge the Risk of Downward Movement in the Price

question 19

Multiple Choice

A farmer can hedge the risk of downward movement in the price of the produce by taking one of the following positions.

• A)Buying a call option.
• B)Selling a put option.
• C)Buying a put option.
• D)Buying a futures contract.

---

Definitions:

Position Power

The authority and influence attributed to a person's role or position within an organization.

Referent Power

The influence one possesses that stems from others' respect, admiration, or identification with them.

Empowerment

The act of granting power or authority to individuals or groups, enabling them to make decisions and take actions autonomously.

Objectives And Priorities

outline the goals and the importance or order in which these goals should be addressed or achieved, acting as guidance for decision-making and resource allocation.