AGRI 320VA Commodity Quiz 2 Fund.docx - AGRI 320VA Fund Agricultural Commodity Marketing Quiz 2 Name_Amelia Petska 1 The premise that makes hedging

AGRI 320VA Commodity Quiz 2 Fund.docx - AGRI 320VA Fund...

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AGRI 320VA Fund. Agricultural Commodity Marketing Quiz 2 Name ___Amelia Petska________________ 1. The premise that makes hedging possible is cash andfutures prices: (a) move in opposite directions(b) move upward and downward by identical amounts(c) generally change in the same direction by similaramounts(d) are regulated by the exchange 2. To hedge against an increase in prices, you would: (a) purchase futures contracts (b) sell futures contracts 3. A farmer’s crop is still in the field. His cash marketposition is: (a) long(b) short(c) neither, since the crop hasn’t been harvested(d) neutral, because he has no position in the futuresMarket 4. The term basis is: (a) the difference between cash market prices in differentlocations(b) the difference between prices for different deliverymonths(c) the difference between the local cash price and afutures price(d) relevant only to speculation
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  • Fall '19
  • CME GROUP, Mar Soybean Oil

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