A Wheat Farmer Should ________ in Order to Reduce His

question 62

Multiple Choice

A wheat farmer should ________ in order to reduce his exposure to risk associated with fluctuations in wheat prices.

• A) sell wheat futures
• B) buy wheat futures
• C) buy a contract for delivery of wheat now and sell a contract for delivery of wheat at harvest time
• D) sell wheat futures if the basis is currently positive and buy wheat futures if the basis is currently negative

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Definitions:

Peptic Ulcer Disease

A condition involving the formation of open sores in the lining of the stomach or the upper part of the small intestine, often due to infection with H. pylori or the use of NSAIDs.

Nonsteroidal Antiinflammatory Drugs

A class of medications that reduce pain, decrease fever, prevent blood clots, and, in higher doses, decrease inflammation.

Hypertension

A chronic medical condition where the blood pressure in the arteries is persistently elevated, which can lead to serious health complications.

Streptococcal Infections

Diseases caused by Streptococcus bacteria, which can lead to conditions ranging from mild throat infections to life-threatening diseases.