You Own 450,000 Bushels of Wheat

question 24

Multiple Choice

You own 450,000 bushels of wheat. If you decide to add a short futures position in wheat you will be taking which one of the following positions?

• A)short hedge
• B)long hedge
• C)program trade
• D)short arbitrage
• E)long arbitrage

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Definitions:

Industry Demand

The total demand for the products of a specific industry, encompassing the collective demand of all consumers for these products.

MR Curve

The Marginal Revenue Curve represents the change in total revenue that results from selling one additional unit of a product or service.

Downward Sloping

A descriptive term for a graph line that shows a decrease in value as it moves from left to right, often used in economics to describe demand curves.

Demand Curve

A graph showing the relationship between the quantity of a commodity demanded and its price.