Test Your Agricultural Knowledge

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Agriculture Quizzes & Trivia

Questions and Answers
  • 1. 
    A hedgers principal motivation for using the futures market is to:
    • A. 

      Earn profits

    • B. 

      Transfer the risk of price changes

    • C. 

      Find out the futures price

    • D. 

      To assure a profitable price

  • 2. 
    The seller of a futures contract is called the:
    • A. 

      Short

    • B. 

      Long

    • C. 

      Speculator

    • D. 

      Scalper

  • 3. 
    Who determines the size, grades, delivery locations and delivery months of a futures contract?
    • A. 

      CFTC

    • B. 

      Exchange where the commodity is traded

    • C. 

      USDA

    • D. 

      National Futures Association

  • 4. 
    A scalper is:
    • A. 

      A position trader

    • B. 

      A spread trader

    • C. 

      A day trader

    • D. 

      Not permitted to trade options

  • 5. 
    A hog farmer decides to use an option to hedge his growing pig crop, he would most likely:
    • A. 

      Buy a call

    • B. 

      Buy a put

    • C. 

      Sell a put

    • D. 

      Buy a straddle