Luke Owns a Large Farming Operation Which Encompasses Over 5,000

question 88

Multiple Choice

Luke owns a large farming operation which encompasses over 5,000 acres of corn.The crop this year is abundant and will be ready for harvesting next month.Luke likes the market prices today but expects the prices to decline over the next month as the supply of corn increases.Which one of the following positions should Luke take to hedge his corn crop?

• A) sell in the spot market today
• B) buy in the spot market today
• C) take a long futures position
• D) take a short futures position
• E) sell in the spot today and take a long position in the futures market

Understand the concept and implications of outsourcing supply chain functions.

Comprehend the procurement process and its importance in the supply chain.

Recognize the role of contracts and their effectiveness in supply chain management.

Appreciate the benefits of third-party involvement in supply chain surplus through aggregation strategies.

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Definitions:

Unconscious Conflicts

Internal struggles that stem from desires, impulses, or memories that are repressed or unacknowledged and exist below the level of conscious awareness.

Fears

Emotional responses to perceived threats or dangers, which are a fundamental aspect of human psychology influencing behavior and decision-making.

Phobias

Intense, irrational fears of specific objects or situations that significantly interfere with an individual's ability to function.

Modeling Techniques

Methods used in behavioral psychology to learn through the observation of others, imitating their actions.