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    Macroeconomics Study Set 24
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    Exam 26: Stocks, bonds, futures, and Options
  5. Question
    A Potato Farmer Who Signs a Futures Contract Is
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A Potato Farmer Who Signs a Futures Contract Is

Question 13

Question 13

Multiple Choice

A potato farmer who signs a futures contract is


A) speculating on the future price of potatoes,hoping it will be higher.
B) speculating on the future price of potatoes,hoping it will be lower.
C) eliminating his exposure to risk from a falling potato price.
D) trying to influence the price of potatoes to rise.

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