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An Orange Grower Who Is Concerned That the Price of Oranges

Question 1

Multiple Choice

An orange grower who is concerned that the price of oranges will fall before harvest and sale can:


A) buy an orange futures contract today.
B) sell an orange futures contract today.
C) carry out in the futures market the opposite of what he plans to do in the physical market when his crop is ready for sale.
D) take a long position in orange futures.

Correct Answer:

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