A Producer That Is Worried About the Future Price That

question 117

Multiple Choice

A producer that is worried about the future price that will be available when the product is to be sold can hedge this price risk by:

• A) buying a futures contract.
• B) selling a futures contract.
• C) buying a put option.
• D) selling a call option.

---

Definitions:

Tailor Customer Promotions

Custom-designed marketing activities aimed at offering specific customer groups incentives that cater to their unique preferences or purchasing history.

Generate Coupons

The process of creating vouchers or codes that consumers can redeem for a discount on goods or services.

Customer Segmentation Analysis

A method of analyzing data that creates customer profiles and categorizes them.

Customer Profiles

Detailed descriptions of a business's typical or ideal customers, including demographic, psychographic, and behavioral traits.