If a Producer Wants Title to Pass to a Buyer

question 205

Multiple Choice

If a producer wants title to pass to a buyer immediately but still wants to pay the freight bill,the invoice should read

• A)"F.O.B.buyer's factory."
• B)"F.O.B.shipping point."
• C)"F.O.B.delivered."
• D)"F.O.B.seller's factory,freight prepaid."
• E)"F.O.B.mill."

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, typically traded on a futures exchange.

Futures Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell a futures contract at a specified price on or before a certain date.