Commodity Marketing

Question 1

Which animals are used for people who want the market to go up & want the market to go down?

Accepted Answer

Bull & Bear

Question 2

Using historical price movements to determine price movement.

Accepted Answer

Technical Analysis

Question 3

A commission is...

Accepted Answer

money earned to a broker for their services

Question 4

Using supply & demand to determine price movement.

Accepted Answer

Fundamental Analysis

Question 5

Selling a long contract to get out of the market.

Accepted Answer

Liquidate

Question 6

A speculator is...

Accepted Answer

a person who guesses and gambles the way the market moves, a person who plans to make quick money

Question 7

Price received by the seller at the local market.

Accepted Answer

Cash Price

Question 8

The basis is...

Accepted Answer

Difference between the cash price & futures price.

Question 9

Define Clearing House...

Accepted Answer

Organization that makes sure every buyer has a seller., Organization that makes sure every seller has a buyer.

Question 10

The Close-out Date usually happens when...

Accepted Answer

20th of the Month, 3rd Monday of the Month

Question 11

The price you are purchasing at...

Accepted Answer

Strike Price

Question 12

When we open a contract, we are...

Accepted Answer

getting into the market.

Question 13

How are cash prices determines?

Accepted Answer

Futures markets

Question 14

A hedger is...

Accepted Answer

a person who has or will have the commodity

Question 15

The federal body that oversees all futures trading in the US...

Accepted Answer

CFTC - Commodity Futures Trading Commission

Question 16

The quantity of a commodity buyers are willing to purchase at a given price.

Accepted Answer

Demand

Question 17

Where are the major commodity markets for ag. commodities?

Accepted Answer

Chicago Mercantile Exchange, Mpls Grain Exchange, Chicago Board of Trade

Question 18

Margin Money is...

Accepted Answer

Good faith money to ensure you can take a loss.

Question 19

To not use your option and let time run out...

Accepted Answer

Expire

Question 20

Price received by the seller at the local market.

Accepted Answer

Cash Price

Question 21

The quantity of a commodity producers are willing to give to the market at a certain price.

Accepted Answer

Supply

Question 22

What is the only component of a futures contract that changes?

Accepted Answer

PRICE, PRICE

Question 23

___ is buying, selling, advertising, transporting, processing, manufacturing of a raw materials

Accepted Answer

Commodity Marketing

Question 24

Which 2 exchanges merged in 2007?

Accepted Answer

Chicago Board of Trade, Chicago Mercantile Exchange

Question 25

A cash sale is...

Accepted Answer

Delivering a commodity and accepting whatever price offered.

Question 26

To buy first in hopes the price will increase.

Accepted Answer

Long

Question 27

People who have or will have the commodity...

Accepted Answer

Hedgers

Question 28

People who guess & gamble which way the market moves to make a profit...

Accepted Answer

Speculators

Question 29

An Option is...

Accepted Answer

The right, but not obligation, to buy or sell at a price.

Question 30

To use the options before time runs out...

Accepted Answer

Exercise

Question 31

Components of the basis include:

Accepted Answer

Labor, Profit, Transportation

Question 32

When you buy back a short contract to get out of the market.

Accepted Answer

Cover

Question 33

Selling a cash commodity then buying it back using a futures contract or futures option.

Accepted Answer

Replacement Hedge or Option

Question 34

What is the futures market?

Accepted Answer

Price set on a commodity to be delivered later.

Question 35

To sell first in hopes the price will decline.

Accepted Answer

Short

Question 36

The cost of an option...

Accepted Answer

Premium

Question 37

Which is NOT part of a futures contract?

Accepted Answer

Your dog's name

Commodity Marketing

Questions 37

Commodity Marketing

Questions 37