Selling a futures contract may be appropriate for one who wishes to:
A) lock in a future sales price.
B) lock in a future purchase price.
C) speculate that future spot prices are going down.
D) have a ready market in which to sell product.

Question

Quizplus · Accepted Answer

Selling a futures contract allows one to lock in a future sales price, providing certainty and reducing price risk. This is especially helpful for those who produce or sell goods that are subject to price fluctuations.

Selling a Futures Contract May Be Appropriate for One Who