1. Which one of the following investments would NOT be a hedge for a corn farmer ?
Purchase a call on the corn futures
Purchase a Put on Corn futures
Purchase a water contract that enables the farmer to take delivery of water in the future
Purchase an option on the future price of gold
2. Consider a firm that has dual-class shares with 250 million Class A shares having one (1) vote each and 75 million Class B shares having ten (10) votes each. If one requires 51 percent of the votes to control this firm, what number of Class B shares must one control ?
37.5 million
51 million
125 million
152.5 million