How Does a Soybean Farmer Lock in a Price of $14.40

question 38

Multiple Choice

How does a soybean farmer lock in a price of $14.40 per bushel when the cash price at harvest is only $14?

• A) Profit in futures market to offset loss in cash market by selling futures contracts at $14.40/bushel.
• B) Break even in both markets by buying a futures contract at $14.40/bushel.
• C) Profit in cash market to offset loss in futures market by buying futures contract at $14.40/bushel.
• D)Break even in both markets by selling a futures contract at $14.40/bushel.

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