If a Firm Expects to Buy a Commodity in the Future

question 26

True/False

If a firm expects to buy a commodity in the future, it may hedge against a price increase by taking a short position in the futures contract.

---

Definitions:

Shared Mission

A collective goal or purpose that unites members of a group or organization in their efforts.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Complex Challenges

Problems or situations that are multifaceted and difficult to solve, requiring innovative and comprehensive approaches.

Collaboration

The act of working with someone else or a group to achieve or create something.