Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Basis trading questions! 15) You had a busy day as farmers deliver and sell you grain across the scales on this balmy August day. You

Basis trading questions!
image text in transcribed
15) You had a busy day as farmers deliver and sell you grain across the scales on this balmy August day. You look at your Daily Balancing Record and notice you are long 4,000 bushels of cash corn. You have been instructed to keep your net position to within +/2,500 bushels. What futures order do you call into your broker? a) Buy 1 contract of SEP corn at the market. b) Sell 1 contract of SEP corn at the market. c) Buy 1 contract of DEC corn at the market. d) Sell 1 contract of DEC corn at the market. 16) You just got off the phone with a producer in which you bought 10,000 bushels of soybeans for October dellivery at your current new crop board price. What order do you call into your futures broker to immediately hedge this transaction? a) Buy 2 contracts of NOV soybeans at the market. b) Sell 2 contracts of NOV soybeans at the market. c) Buy 2 contracts of NOV soybeans TAS. d) Sell 2 contracts of NOV soybeans TAS. 17) It's March and you just got off the phone with livestock feeder in which you sold him 10,000 bushels of corn for October delivery at your current new crop board price. What order do you call into your futures broker to immediately hedge this transaction? a) Buy 2 contracts of MAY corn at the market. b) Sell 2 contracts of MAY corn at the market. c) Buy 2 contracts of DEC corn at the market. d) Sell 2 contracts of DEC corn TAS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

explain this 13=4. mulative distribution function ( X ) - ( X 4

Answered: 1 week ago

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago