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2. Ifapension an anagee 13. You, a farmer, anticipate taking 80.000 busuels of oyueas tos teakn mmtbn 5.85. The siae hedge one-half of your exposure

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2. Ifapension an anagee 13. You, a farmer, anticipate taking 80.000 busuels of oyueas tos teakn mmtbn 5.85. The siae hedge one-half of your exposure to a drop in the vabue of soyteans, how may contracts would you buy or sel7 s would b. Buy 16 fatures contracts c. Sell 8 futures contracts. d. Buy 8 futures contracts. e. Sell 4 futures contracts. 14. Stock index futures and options allow an investor to: a. select a security from any of those inctuded in the index. b. gain or lose from the movement of the index. c. trade any of the securities in the index d. None of the above. 15. Which of the following starally considered to predict presidential eleehs b.sthedifference between the futures price and the value of ts about the "basis" of stock index futures is true? gative basis is generally considered to predict presidential elections index Choices a. and b. are both correct. None of the above. difference between the futures price and the value of the actual underlying c. d. After six months the contract value went up to $1,539.95. The contract has a multiplier of 250. With an initial margin of $20,000, what is the percent return on margin? 16. An investor bought a March S&P 500 Index futures contract in December for $1,490.05 a. 62.38% b. 60.32% c. 7.7096 d. 7.45% e. 6.32% 2. Ifapension an anagee 13. You, a farmer, anticipate taking 80.000 busuels of oyueas tos teakn mmtbn 5.85. The siae hedge one-half of your exposure to a drop in the vabue of soyteans, how may contracts would you buy or sel7 s would b. Buy 16 fatures contracts c. Sell 8 futures contracts. d. Buy 8 futures contracts. e. Sell 4 futures contracts. 14. Stock index futures and options allow an investor to: a. select a security from any of those inctuded in the index. b. gain or lose from the movement of the index. c. trade any of the securities in the index d. None of the above. 15. Which of the following starally considered to predict presidential eleehs b.sthedifference between the futures price and the value of ts about the "basis" of stock index futures is true? gative basis is generally considered to predict presidential elections index Choices a. and b. are both correct. None of the above. difference between the futures price and the value of the actual underlying c. d. After six months the contract value went up to $1,539.95. The contract has a multiplier of 250. With an initial margin of $20,000, what is the percent return on margin? 16. An investor bought a March S&P 500 Index futures contract in December for $1,490.05 a. 62.38% b. 60.32% c. 7.7096 d. 7.45% e. 6.32%

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