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.

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Definitions:

Lumen

The internal area of a hollow organ, like a blood vessel or the gut.

Vestibule

An entrance hall or other open area in a building used by the public, especially a hotel or theater; in anatomy, it refers to the entrance of many structures in the body such as the mouth or ear.

Labia Minora

The inner folds of skin located at the entrance of the female genitalia, playing a role in protecting the vaginal and urethral openings.

Urethra

The duct through which urine is discharged from the bladder in both sexes and through which semen is discharged in males.