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A Farmer Has a Long Position in Barley and Hedges

question 41

Multiple Choice

A farmer has a long position in barley and hedges it with a short position in wheat. Which one of the following terms applies to this situation?


Definitions:

Overly Optimistic

Describes a tendency to hold a rosier outlook than reality might support, often resulting in unrealistic expectations.

Hierarchy Of Goals

A prioritized structure of objectives, ranging from the most immediate and individual to the broad and long-term.

Planning Fallacy

The tendency to underestimate how much time is needed to complete a task, leading to overly optimistic time estimations.

Optimistic Mindset

A mental attitude characterized by hope and confidence in success and positive outcomes.

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