Which of the following is an example of a forward contract?
A. A farmer near Ames and a local ethanol plant agree on a price and quantity of corn to be delivered later today.
B. A farmer near Ames and Key Co-Op agree on a price and quantity of corn to be delivered 6 months from now.
C. A farmer near Ames goes short on a futures contract.
D. A farmer in Ames sells corn to a Canadian firm.
Ans: B. A farmer near Ames and Key Co-Op agree on a price and quantity of corn to be delivered 6 months from now.
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Autarky refers to
A) a situation in which there is no trade. B) the equilibrium a nation reaches after trade begins. C) a situation in which nations trade goods and services. D) the location on a consumption possibilities curve.
The use of a direct mail flyer with free incentive "blue light" and free offers enticing potential customers to come into the new store, the blue lights during the shopping trip, the purchase of Super K blue light specials and merchandise and blue light logo items are all coordinated to build brand awareness, identity and preference. This is advertising technique is called:
Lawrence is a photographer. He has $230 to spend and wants to buy either a flash for his camera or a new tripod. Both the flash and tripod cost $230, so he can only buy one. This illustrates the principle that
a. trade can make everyone better off. b. people face trade-offs. c. rational people think at the margin. d. people respond to incentives.
Tying is always profitable for a monopoly
a. True b. False Indicate whether the statement is true or false