If you want to lock in the price today for a sale which you will make sometime in the future, you should engage in a:
A) Swap contract.
B) Cross-hedge.
C) Interest rate floor.
D) Long call option.
E) Forward contract.

Question

Quizplus · Accepted Answer

A forward contract allows you to lock in a price today for a transaction that will occur in the future, effectively securing the cost or revenue associated with the sale or purchase of an asset at a future date.

If You Want to Lock in the Price Today for a Sale