Rachel, an adventurous investor, bought a futures contract for May delivery of 40,000 lbs of lean pork. In late April, she is becoming uneasy about what to do with so much pork.
A) She can choose settle her profit or loss in cash rather than pork.
B) She can try to find someone willing to take delivery of the pork.
C) She can sell the contract or cancel it by entering into the opposite contract (to sell rather than buy).
D) She needs to buy a very large freezer.

Question

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The Answer of Rachel, an adventurous investor, bought a futures contract for May delivery of 40,000 lbs of lean pork. In late April, she is becoming uneasy about what to do with so much pork.
A) She can choose settle her profit or loss in cash rather than pork.
B) She can try to find someone willing to take delivery of the pork.
C) She can sell the contract or cancel it by entering into the opposite contract (to sell rather than buy).
D) She needs to buy a very large freezer.

Rachel, an Adventurous Investor, Bought a Futures Contract for May