Ask Question
BusinessBusiness
28 March, 16:32

Farmer Jones raises several hundred acres of corn and would suffer a significant loss should the price of corn decline at harvest time. Which one of the following would he be doing if he purchased financial securities to offset this price risk? A. abatingB. derivingC. hedgingD. forwardingE. manipulating

+5
Answers (1)
  1. 28 March, 18:42
    0
    The correct answer is C. hedging.

    Explanation:

    Coverage, in finance, is the set of operations aimed at canceling or reducing the risk of a financial asset or liability in the possession of a company or an individual. Funds created for this purpose are called hedge funds.

    The hedging operations consist of the acquisition or sale of a financial asset that is correlated with the element on which the coverage is to be established. Said acquisition or sale may be of shares, indices, interest rates, options, futures, etc.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Farmer Jones raises several hundred acres of corn and would suffer a significant loss should the price of corn decline at harvest time. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Sierra offers to sell alyssa a scottish terrier puppy for $800. alyssa and sierra do not discuss the dog's ancestry, but alyssa believes that the dog came from champion lines and agrees to the price.
Answers (1)
Specialization and trade can result in shifting employment patterns what possibilities
Answers (1)
The revenue, in millionsmillions of dollars, for a company in year tt is given by the function: r (t) = 15e0.19t, 0≤t≤15 r (t) = 15e0.
Answers (1)
What is the journal entry for "cash received from cash customers" for accounting?
Answers (1)
Which of the following is a limitation of a personal account? a. only one person's perspective b. primary source c. first-hand experience d. eyewitness report
Answers (1)
New Questions in Business
Rudy's stock is currently valued at $28.40 a share. The firm had earnings per share of $1.86 last year and projects earnings of $2.09 a share for next year. What is the trailing twelve month price-earnings ratio?
Answers (1)
As you get closer to needing the money from an investment, what happens to your risk tolerance
Answers (1)
On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735,474 and mature on January 31, 2041 (20 years). The market yield for bonds of similar risk and maturity was 9%.
Answers (1)
Use your knowledge about the advantages of international trade to complete each sentence. International tradeeconomic growth. International tradethe specialization of goods.
Answers (2)
Occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries. Multiple Choice o Dumping advantage o Complete advantage o Comparative advantage o Absolute advantage
Answers (1)
Home » Business » Farmer Jones raises several hundred acres of corn and would suffer a significant loss should the price of corn decline at harvest time. Which one of the following would he be doing if he purchased financial securities to offset this price risk? A.
Sign Up Forgot Password?