Quiz #6.

• Name and SSN on scan sheets

1.

Aug 1, 2001: Cash price, Garden City - $2.20,

Dec 01 futures - $3.00; March 02 futures - $3.10Cost of carry (storage + interest) = 4c/mo.Dec 1, 2001: Cash price, Garden City - $2.90, Dec futures - $3.40; Mar futures - $3.55

Storage hedge profit (Aug 1 to Dec 1) using Dec 01 futures is: a) 30c/bub) 14c/buc) 9c/bud) 16c/bue) none of the above

2.

Aug 1, 2001: Cash price, Garden City - $2.20,

Dec 01 futures - $3.00; March 02 futures - $3.10Cost of carry (storage + interest) = 4c/mo.Dec 1, 2001: Cash price, Garden City - $2.90, Dec futures - $3.40; Mar futures - $3.55

Storage hedge profit (Aug 1 to Dec 1) using Mar 02 futures is: a) 30c/bub) 14c/buc) 9c/bud) 16c/bue) none of the above

3.

Aug 1, 2001: Cash price, Garden City - $2.20,

Dec 01 futures - $3.00; March 02 futures - $3.10Cost of carry (storage + interest) = 4c/mo.Dec 1, 2001: Cash price, Garden City - $2.90, Dec futures - $3.40; Mar futures - $3.55

Between Aug 1 and Dec 1, the Dec-Mar spread widened.:

a) True

b) False

4.

Calculate the crush margin if the DTN price quotes are as follows:

Beans - 5000; Oil - 1600; Meal - 1600

The crush margin is:a) 60c/bu

b) 70c/bu

c) 80c/bu

d) none of the above

5.

If the interest rate is 10% and a farmer’s cost of putting grain in and out of his own bins is 3c/bu, which is the better offer?

a) $3.60/bu at harvest

b) $3.70/bu three months post harvest

6: Extra Credit

The currency used in Ireland is:

a) The Pound Sterling

b) Irish dollar

c) The Euro

d) The Irish Pound