Selling a futures contract may be appropriate for someone 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 up.
D) have a ready market in which to sell a product.

Question

Quizplus · Accepted Answer

Selling a futures contract allows the seller to lock in a future sales price, providing protection against a potential decline in prices. This is commonly used by producers and suppliers to mitigate risks associated with price volatility in the market.

Selling a Futures Contract May Be Appropriate for Someone Who