Test Your Agricultural Knowledge
5 Questions
| Total Attempts: 209
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
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