CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

In June a farmer expects to harvest at least 10,000 bushels of soybeans during September. In order to protect himself against the possibility of falling soybean prices in September, the farmer should act as a(n) ______.

A. hedger
B. speculator
C. arbitrageur
Correct Answer: A

By hedging, the farmer can lock in a price for his soybeans in June.

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