15 Futures markets are also used to reduce risk by CA lockin

15. Futures markets are also used to reduce risk by: CA. locking in future prices of inputs, such as jet fuel. C B. locking in future prices of outputs, such as crops C. locking in future prices of both inputs and outputs. CD. Futures markets do not reduce risk.

Solution

C is correct

Future contracts are offered in future market where future prices of any good either input or output can be set. Producer and consumer both can hedge risk by future contracts.

It looks in future prices of both inputs and outputs.