Hedgers Who Buy Futures Contracts Are Protecting Themselves from Future

question 92

True/False

Hedgers who buy futures contracts are protecting themselves from future price increases.

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Definitions:

Knowledge

Familiarity, awareness, or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Society's Values

The shared beliefs, norms, and mores that are important to a group or society and influence behavior and decision-making.

Unique Patterns

Distinctive and specific arrangements or sequences that are characteristic to an individual or entity.