Multiple Choice
Farmer Ted planted 200 acres in wheat this year. The weather has been perfect and he expects to harvest a record crop within the next two weeks. At present, he has no storage facilities and therefore must sell his crop as soon as it is harvested. Which one of the following risks is he facing because he must sell his crop at whatever the market price is at harvest time?
A) Futures risk
B) Volatility exposure
C) Economic exposure
D) Transactions exposure
E) Translation exposure
Correct Answer:
Verified
Correct Answer:
Verified
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