For a Hedge to Work, the Futures Contract Must Continue

question 32

True/False

For a hedge to work, the futures contract must continue until actual delivery takes place.

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Definitions:

Future Events

Occurrences or circumstances that have not yet happened but are anticipated or expected to occur.

Business Transactions

Business transactions are economic events that affect a company's financial position, involving exchanges of value between two parties.

Personal Transactions

Financial activities that are not related to the business and pertain to the personal dealings of an individual or owner.

Owners

Refers to individuals or entities that have legal ownership and control over a business or property.