If You Use Futures Prices to Estimate the Cash Flows

question 35

Multiple Choice

If you use futures prices to estimate the cash flows from commodity production, the estimates are

• A)the present values of future cash flows.
• B)certainty equivalents.
• C)the same as the estimates using spot prices.
• D)the present values of future cash flows and the same as the estimates using spot prices.

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Definitions:

Modern Republican Party

Refers to the contemporary iteration of the Republican Party in the United States, which emphasizes conservative economic policies, strong national defense, and varying stances on social issues.

Nineteen Century

The period from 1801 to 1900, marked by significant social, political, and technological changes worldwide.

Republican Party Presidential Nominee

The individual selected to represent the Republican Party in the United States presidential election.

Barry Goldwater

A significant figure in American politics, known for his 1964 presidential campaign and as a major proponent of conservatism in the United States.