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 the seller to lock in a future sales price for a commodity or financial instrument. This can be a useful tool for producers or sellers who want to protect themselves against potential price declines.

Selling a Futures Contract May Be Appropriate for One Who