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10 Consider the contract specifications of the soybean futures contract traded on the CBOT. Size: 5,000 bushels, Grade and quality: #2 Yellow at contract price,
10 Consider the contract specifications of the soybean futures contract traded on the CBOT. Size: 5,000 bushels, Grade and quality: #2 Yellow at contract price, #1 Yellow at a 6 cent/bushel premium, #3 Yellow at a 6 cent/bushel discount, Daily price limit: $0.60/bushel, Single month position limit: 15,000 contracts. The November 2022 contract currently trades at a price of $9.42/bushel. Consider the following statements. 1. If the contract specified that only #2 Yellow soybean was eligible for delivery, the November 2022 futures price would be greater than $9.42/bushel. 11. The maximum daily gain or loss for a soybean futures trader on a per contract basis is $3000. III. A soybean producer wishing to hedge a future soybean harvest cannot hold a short position greater than 15,000 contracts of the November 2022 soybean futures contract. Which of the following is correct? a. Statements I and II are correct, Statement Ill is incorrect. b. Statements I and III are correct, Statement Il is incorrect C. Statements II and Ill are correct, Statement is incorrect. e
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