Sugar Is Currently Selling for $0

question 3

Multiple Choice

Sugar is currently selling for $0.201 a pound while the 6-month futures price is $0.208.You take a long position in the 6-month sugar futures.Which one of the following prices would cause you the greatest loss if that price turns out to be the actual price of sugar per pound 6 months from now?

• A) $0.198
• B) $0.201
• C) $0.205
• D) $0.208
• E) $0.211

---

Definitions:

Irregular Coast

A coastline that has a complex shape, often characterized by numerous bays, peninsulas, and inlets.

Submarine Canyons

Steep-sided valleys cut into the seabed of the continental slope, sometimes extending well onto the continental shelf.

Shoreline Hazards

Risks associated with the coastal areas, including erosion, flooding, and storms, impacting ecosystems and human settlements.

Erosion

The process by which natural forces like water, wind, ice, and gravity remove and transport soil and rock materials from one location to another.