Back To School Quiz #2

6 Questions | Total Attempts: 246

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Back To School Quizzes & Trivia

Welcome to Quiz #2! Ed’s challenging and authentic quiz questions are designed to test your grain marketing knowledge, and will help you learn while having fun! Ed Usset is the author of “Grain Marketing is Simple, It’s Just Not Easy,” and is a grain marketing specialist at the University of Minnesota.


Questions and Answers
  • 1. 
    If you pay a premium of 37 cents per bushel for a $4.00 December corn put, what is the most money you can lose?
    • A. 

      $4.00 per bushel

    • B. 

      37 cents per bushel

    • C. 

      Your potential loss is unlimited

  • 2. 
    What does the term "backwardation" mean?
    • A. 

      Corn prices are higher than wheat prices

    • B. 

      The spot price of a commodity is higher than the price for future delivery

    • C. 

      You live in a remote area with no internet access

  • 3. 
    Acres planted to corn have increased over the past 10 years. In 1999, there were 77 million acres planted to corn. The June acreage report indicated 2009 plantings closer to 87 million acres. Which state had the largest increase in corn acres between 1999 and 2009?
    • A. 

      Iowa

    • B. 

      Illinois

    • C. 

      North Dakota

    • D. 

      South Dakota

  • 4. 
    Just four commodities – corn, soybeans, wheat and hay – take up nearly 90% of acres planted to “principal crops.” As is true this year, corn is typically our most widely planted crop. This year USDA estimates nearly 50% more corn acres than wheat (87 vs 59 ma). Wow! What was the last year when total acres planted to wheat in the U.S. was higher than corn?
    • A. 

      1946

    • B. 

      1972

    • C. 

      1983

    • D. 

      1990

  • 5. 
    Let’s say you pay 115 cents for a $10 November soybean put when the underlying futures price was $9.80 per bushel. Is this option…
    • A. 

      In-the-money

    • B. 

      Out-of-the-money

    • C. 

      At-the-money

  • 6. 
    If you sell (or write) a $12 November soybean call option and receive a premium of 30 cents per bushel, what’s the most money you can lose?
    • A. 

      $12 per bushel

    • B. 

      30 cents per bushel

    • C. 

      Your potential loss is unlimited

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