Investment Management 1. Great Lakes Farm agreed this morning to sell General Mi

Question

Investment Management

1. Great Lakes Farm agreed this morning to sell General Mills 25,000 bushels of wheat six months from now at a price per bushel of $9.75. This is an example of a:

A. call option.

B. put option.

C. futures contract.

D. money market security.

E. fixed-income security.

2. If you want to sell the 500 shares of BEAV stocks you just purchased if the price falls by more than 10%, you should:

A. place a limit buy order.

B. sell a call option.

C. sell a put option.

D. place a stop loss order.

E. place a trailing stop order.

3. The profit a dealer/broker makes on a purchase and resale of shares of stock is called the:

A. margin.

B. bid.

C. float.

D. offer.

E. spread.

Explanation / Answer

C. futures contract.

D. place a stop loss order.

E. spread. it is the bid ask spread which the agent exploits to gain a profit

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.