What Must Happen to Prices Over the Course of a Contract

question 1

Multiple Choice

What must happen to prices over the course of a contract for the seller of a futures contract to maximize benefits of the hedge?

• A) Prices must decrease.
• B) Prices must increase.
• C) Prices must remain constant.
• D) The seller will profit on the hedge regardless of the direction of price movements.

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Definitions:

SIDS

Sudden Infant Death Syndrome, an unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.

Preterm Infants

Babies born before completing the usual 37 weeks of gestation, often facing higher risks of complications.

Neonates

Newborn infants, especially within the first month after birth, a critical period for adaptation outside the womb.

High-Pitched Sounds

Sounds that have a high frequency, often heard as sharp or shrill to the human ear.