Selling a Futures Contract May Be Appropriate for One Who

question 120

Multiple Choice

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

---

Definitions:

Process-oriented Layout

A way of arranging equipment and workstations in a workspace where similar processes are grouped together, aimed at optimizing efficiency in production or service operations.

Material Flow

The movement, storage, control, and protection of materials, goods, and products throughout the process of manufacturing, warehousing, distribution, consumption, and disposal.

Minimize Distance

The objective to reduce the total length or travel time between points, often in logistics, routing, or layout planning.

Material Handling Costs

Expenses associated with the moving, storing, and controlling materials and products.