Introducing Industry Concepts in Agricultural Origination and Tra

1.

Choose the correct answer.

Participating in the futures market to mitigate risk

Selling short

Buying grain at discount prices

Selling grain at the futures price

2.

There are three correct answers.

To mitigate risk

To increase margin

To hedge against losses

To increase grain supplies

3.

There are five correct answers.

Pushing the bid

Employee turnover

Hedge slippage

Poor space utilization

Waiving discounts

Poor position taking

4.

There are four correct answers.

Back-to-Back Margins

Carry Earnings

Mix-and-Blend Earnings

Position Taking

Selling to Consumers

5.

Choose the correct answer.

Cash = Futures

Basis = Futures - Cash

Cash = Futures + Basis

Futures = Cash + Basis

Knowledge quiz