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

question 16

Multiple Choice

Lucas 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.Lucas 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 Lucas 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

---

Definitions:

Social Support

Assistance or comfort provided by others, such as family, friends, and the community, which contributes to an individual's well-being.

Self-Esteem

A person's personal subjective assessment of their own value based on their emotions.

Physical Appearance

The observable characteristics or features of an individual's body, including shape, size, and complexion.

Sense of Self-Worth

An individual's subjective evaluation of their own value and importance.