A steakhouse takes a long position on cattle futures to limit its risk in the case of a cattle price increase. Six months later the steakhouse wants to eliminate its obligation under this position before the futures contracts expire. What should the steakhouse do?

Question 3 options:

1.) Buy Cows

2.) Sell cows in the spot market.

3.) Deliver Cows to the Chicago Board of Trade

4.) Take a short cattle futures contract position to offset the long position

5.) Sell the long futures contracts.