You Are a Baker and Need to Purchase a Substantial

question 34

Multiple Choice

You are a baker and need to purchase a substantial amount of wheat flour three months from now in preparation for your busy season. Your concern is that the price of wheat will increase substantially before you make your purchase. Which one of the following positions in wheat would be an effective hedge for you?

• A) long position in spot market
• B) short position in spot market
• C) long position in futures market
• D) short position in futures market
• E) none of the above

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Definitions:

Ethical Issues

Concerns or dilemmas about right and wrong, moral principles, and values that arise in various contexts.

Frontline Employees

Workers who are directly involved with customers, offering services or selling products, often seen as the face of the company.

Conscious Marketing

Marketing practices that are aware of their impact on society, the environment, and the welfare of consumers, prioritizing ethical considerations.

Ethical Policies

Guidelines and principles set by an organization to conduct its business in a manner that is honest, fair, and respectful to all stakeholders.