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A Farmer Can Avoid Delivery on a Futures Contract by Buying

question 9

True/False

A farmer can avoid delivery on a futures contract by buying an offsetting futures contract.


Definitions:

FUTA Taxes

Federal unemployment taxes levied on employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.

Calendar Quarter

A period of three months on the calendar used for financial and business reporting, starting from the beginning of January, April, July, or October.

Form W-2

An annual form issued by employers to each employee, reporting the employee's yearly wages and the amount of taxes withheld from their paycheck.

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