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Which of the Following Statements Is FALSE

Question 37

Multiple Choice

Which of the following statements is FALSE?


A) Long-term supply contracts cannot be entered into anonymously;the buyer and seller know each other's identity.This lack of anonymity may have strategic disadvantages.
B) A futures contract is an agreement to trade an asset on some future date,at a price that is locked in today.
C) An alternative to vertical integration or storage is a long-term supply contract.
D) Long-term supply contracts are unilateral contracts negotiated by a seller.

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