Farmer Ted Planted 200 Acres in Wheat This Year

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) surplus risk
D) transactions exposure
E) translation exposure