The Primary Reason for Selling a Futures Contract (I

question 34

True/False

The primary reason for selling a futures contract (i.e., making a contract to deliver) is the expectation of higher prices.​

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Definitions:

Manufacturing Unit

A manufacturing unit refers to a facility or factory where goods are produced through the combination of labor, machinery, and processing techniques.

License

A personal privilege to do some act or series of acts on the land of another, without possessing any ownership interest in the land. A permit or authorization to do something that, without a license, would be unlawful.

Commercial Purposes

Activities undertaken with the intention of generating profit or revenue, as opposed to personal or non-commercial use.

Undue Advantage

Gaining benefits or advantages in an unfair or unethical manner, often at the expense of others.