Use the Following Soybean Futures Quotes

question 25

Multiple Choice

Use the following soybean futures quotes:

-You purchased four November 08 futures contracts on soybeans when they first became available this morning.Your investment has been worth as little as ________ and as much as ________.

• A) $255,350; $265,500
• B) $255,350; $265,020
• C) $257,440; $265,500
• D) $257,440; $265,020
• E) $257,440; $265,520

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Definitions:

Acid-test Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Debt-to-equity Ratio

The debt-to-equity ratio is a financial leverage ratio that compares a company's total liabilities to its shareholder equity, indicating how much the company is financing its operations through debt versus wholly owned funds.

Receivable Turnover

Receivable turnover is a financial ratio that measures how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock levels.