A seller of commodities who has entered into forward contracts with customers will profit if prices fall before the purchase is concluded.

Name: A seller of commodities who has entered into forward contracts with customers will profit if prices fall before the purchase is concluded.
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Question

Quizplus · Accepted Answer

A seller in a forward contract benefits from falling prices because they have locked in a higher selling price, allowing them to buy the commodity at a lower market price and sell at the agreed higher price.

A Seller of Commodities Who Has Entered into Forward Contracts