A Farmer Sells Futures Contracts at a Price of $2

question 20

Multiple Choice

A farmer sells futures contracts at a price of $2.75 per bushel. The spot price of corn is $2.55 at contract expiration. The farmer harvested 12,500 bushels of corn and sold futures contracts on 10,000 bushels of corn.
What are the farmer's proceeds from the sale of corn?

• A) $27,500
• B) $31,875
• C) $33,875
• D) $35,950

Differentiate between demographic variables and psychographics.

Recognize the impact of consumer-generated content in modern marketing.

Understand the emergence and relevance of virtual brand communities.

Acknowledge the role of consumer behavior trends in strategic marketing planning.

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Definitions:

Borrowing Funds

The act of obtaining money from external sources, like banks or investors, which must usually be repaid with interest.

Interest Expense

The cost incurred by an entity for borrowed funds, payable to lenders as a finance charge over the term of the loan.

Existing Account Payable

Existing Account Payable refers to accounts payable obligations that are currently outstanding, representing previous credit purchases yet to be settled.

Notes Payable

Short-term or long-term liabilities representing amounts owed to creditors or lenders, evidenced by a written promissory note.