A producer that is worried about the future price that will be available when the product is to be sold can hedge this price risk by:
A)Buying a futures contract
B)Selling a futures contract
C)Buying a put option
D)Selling a call option

Question

Quizplus · Accepted Answer

A producer can hedge against a future price decline by selling a futures contract, locking in a price for their product.

A Producer That Is Worried About the Future Price That