Which of the following are bought and sold on the Chicago Board of Trade?

Which of the following are bought and sold on the Chicago Board of Trade?

• A. Soybean Futures Contracts
• B. Wheat Futures Contracts
• C. Corn Cash Market
• D. Rice Futures Contracts

Answer: (A)

Futures contracts on a major exchange let people buy or sell a commodity at a set price on a future date, providing price discovery and a way to hedge risk. On the Chicago Board of Trade, soybean futures contracts are a classic example of this kind of traded instrument. They’re standardized in size, grade, and delivery month, and traders—farmers, processors, traders, and speculators—buy and sell them to manage price risk or to speculate on price movements. The corn option here refers to the cash market, which is actual physical corn bought and sold for immediate delivery rather than a futures contract traded on CBOT. While wheat futures and rice futures exist on futures exchanges as well, the example that best illustrates something actively bought and sold on CBOT among the choices is soybean futures contracts.

Futures contracts on a major exchange let people buy or sell a commodity at a set price on a future date, providing price discovery and a way to hedge risk. On the Chicago Board of Trade, soybean futures contracts are a classic example of this kind of traded instrument. They’re standardized in size, grade, and delivery month, and traders—farmers, processors, traders, and speculators—buy and sell them to manage price risk or to speculate on price movements.

The corn option here refers to the cash market, which is actual physical corn bought and sold for immediate delivery rather than a futures contract traded on CBOT. While wheat futures and rice futures exist on futures exchanges as well, the example that best illustrates something actively bought and sold on CBOT among the choices is soybean futures contracts.