Question
1. Total storage cost for holding corn from November 1 to April 1 would be 10 cents if the November harvest price was $1.80, the
1. Total storage cost for holding corn from November 1 to April 1 would be 10 cents if the November harvest price was $1.80, the April price was $2.00, and the five months of storage costs 2 cents per month True or False
2. All options markets are derived from a respective futures market True or False
3. If you are a buyer of raw agricultural commodity ingredients for food processing you would sell futures to edge your exposure to price risk True or False
4. Government trade policies can positively or negatively impact agriculture prices in respective country True or False
5. For a commodity balance sheet: total use of the commodity is made up of feed, food, seed, industrial uses and imports True or False
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