A farmer expects to harvest 800,000 bushels of corn. To eliminate price risk, the farmer elects to short corn futures. What would cause the farmer to short only 720,000 bushels of corn?
A) Basis risk
B) Illiquid futures markets
C) Margin requirements
D) Quantity uncertain
D
You might also like to view...
To take full advantage of feedback, ask for it early in the communication process and use it to evaluate and revise your communication strategy
Indicate whether the statement is true or false.
Differentiate between positional modeling and positional rotation and provide an example of each.
What will be an ideal response?
Which of the following is NOT an advantage to exporting goods to reach international markets rather than entering into some form of FDI?
A) fewer political risks B) greater agency costs C) lower front-end investment D) All of the above are advantages.
The Foreign Corrupt Practices Act prohibits companies from importing foreign goods that might corrupt the morals of Americans
a. True b. False Indicate whether the statement is true or false