You Hold One Long Corn Futures Contract That Expires in April

question 4

Multiple Choice

You hold one long corn futures contract that expires in April. To close your position in corn futures before the delivery date you must

• A) buy one May corn futures contract.
• B) buy two April corn futures contract.
• C) sell one April corn futures contract.
• D) sell one May corn futures contract.

---

Definitions:

Forecasting Device

A tool or software used to predict future conditions or trends based on historical and current data analysis.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of inflation and the rate of unemployment over the short term.

Inflation

The measure at which prices for general goods and services escalate, devaluing the purchasing power.

Structural Unemployment

Unemployment resulting from industrial restructuring, technological changes, or other long-term factors, affecting the structure of the labor market.