Question: What might be the most possible reason a corn farmer closes out a corn futures contract before delivery? Group of answer choices The farmer has

What might be the most possible reason a corn farmer closes out a corn futures contract before delivery?

Group of answer choices

The farmer has successfully hedged the risk and taking delivery can be costly with uncertainties

The farmer sees an opportunity to speculate

The farmer might have just fat fingered

The farmer no longer wants to stay in the corn business

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Determination of the acceleration due to gravity using a simple pendulum Virtual Laboratory Session xperimental Set-u o Equipment required: Smart Phones / Computers connected to the internet....

Q:

What might be the most possible reason a corn farmer closes out a corn futures contract before delivery? The farmer has successfully hedged the risk and taking delivery can be costly with...

Q:

Answer the following MCQs by choosing the correct answer and fill it up in the answer table provided at the end of this section. Each correct answer will be awarded 2 marks. 1.A company enters into a...

Q:

You are the manager of a silver mine, and want to sell your silver two months from now. To manage your price risk using options, you sell a put. Group of answer choices True False A large absolute...

Q:

Study guide questions 20 multiple choice 1. What contract did the Apple farmer and Pie Chain set up? According to the contract, when will the Chain buy the 1 million lbs of apples? forward contract;...

Q:

Hi, I need help with only Question 1, all parts. Please answer as soon as possible. Thank you. (Ideally within 1 hour) Prof. PIRIM Spring 2016, Session II Options and Futures I (BusFin 4230 ) Problem...

Q:

I want answers to the case study below CASE STUDY The Rise, Fall, and Resurrection of Iridium: A Project Management Perspective The Iridium Project was designed to create a worldwide wireless...

Q:

Select an organisation with which you are familiar and write a report on how you would transform a clearly defined segment of the organisation into a sustainable business segment. Do not select an...

Q:

Teuro5 For the year ending December 31, 2021, the Company's income statement is as follows: Revenues $1,093,000 Expenses: Cost Of Goods Sold ($206,000) Administrative Costs ( 152,000) Amortization...

Q:

A corn farmer should __________ in order to reduce his exposure to risk associated with fluctuations in corn prices. Group of answer choices sell corn futures buy corn futures buy a contract for...

Q:

1 Differentiate between the types of risk in the following pairs. [5 marks] pure and speculative risks diversifiable and non-diversifiable risks Define the law of large numbers and explain its...

Q:

Identify the following two isomeric alkyl halides (C5H11Br) from their 300-MHz NMR spectra, which are as follows: Compound A: 0.91 (6/7, d, J = 6 Hz); 1.7-1.8 (3H, complex); 3.42 (2H, t, J = 6 Hz)...

Q:

PEMS Co. International, Inc., agreed to find a buyer for Rupp Industries, Inc., for a com-mission of 2 percent of the purchase price, which was to be paid by the buyer. Using PEMSs services, an...

Q:

The Helio funds intended asset allocation is 6 0 % stocks and 4 0 % bonds. after one year market value fluctuations resulted in actual asset proportions of 5 0 % stocks of 5 0 % bonds. what is the...

Q:

Current Attempt in Progress One of your cousins owns Sheridan Supplies Ltd. (SSL). She has asked for your help in preparing SSL's bank reconciliation for the month of October and gathered the...