To lock in the price that it will have to pay for an asset in the future, a business should sell a futures contract.

Name: To lock in the price that it will have to pay for an asset in the future, a business should sell a futures contract.
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Question

Quizplus · Accepted Answer

To lock in the price that it will have to pay for an asset in the future, a business should buy a futures contract, not sell one. Selling a futures contract is a commitment to deliver an asset at a set price in the future, not to purchase it.

To Lock in the Price That It Will Have to Pay