Selling a Futures Contract May Be Appropriate for One Who

question 80

Multiple Choice

Selling a futures contract may be appropriate for one who wishes to:

• A) lock in a future sales price.
• B) lock in a future purchase price.
• C) speculate that future spot prices are going down.
• D) have a ready market in which to sell product.

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Definitions:

New Products

Goods or services that have been recently introduced to the market, offering novel features or improvements over existing offerings.

R&D

Research and Development (R&D) denotes the activities related to the innovation and improvement of products and processes.

Resistance to Change

The reluctance or refusal to accept new policies, practices, or conditions, often seen in organizational contexts when transformations are initiated.

Ignorance

The lack of knowledge, information, or awareness about something.