If a cannery wanted to lock in the price they would pay for peaches in August four months before harvest (in April of the same year),they would be most likely to enter into which kind of agreement?
A) Interest rate swap
B) Fixed commodities contract
C) Futures contract
D) Option

Question

Quizplus · Accepted Answer

A futures contract allows a buyer to lock in a price for a commodity at a future date, which would be ideal for a cannery looking to secure the price of peaches in advance. The other options are not relevant to this scenario.

If a Cannery Wanted to Lock in the Price They