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

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Definitions:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Disposition

A person's inherent qualities of mind and character.

Stanford Prison Study

A psychological experiment conducted in 1971 that explored the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Emotional Symptoms

Feelings or reactions that are a response to an event or condition, which can affect an individual's mental state and well-being.