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.

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Definitions:

Vocational Skills

Practical abilities and know-how related to specific trades or professions, acquired through training and experience.

Autism Spectrum Disorder

A range of neurodevelopmental disorders characterized by social deficits, communication difficulties, and restricted, repetitive, and stereotyped patterns of behavior.

Atypical Antipsychotic Medications

A newer class of psychiatric drugs that typically have fewer side effects than older antipsychotic medications and are used to treat symptoms of psychiatric disorders.

Autism Spectrum Disorder

Autism Spectrum Disorder is a developmental disorder characterized by challenges with social interaction, communication, and by restricted, repetitive patterns of behavior, interests, or activities.