Micheal is a purchasing agent for a national chain of fast food restaurants. French fries are one of the most popular items on the menu. Oscar is a potato farmer in Idaho. Micheal and Oscar entered into a futures contract to set the price of Oscar's potatoes True or False: Micheal is obligated to purchase potatoes from Oscar in the future True False True or False: Micheal is concerned there might be a potato blight that would limit the supply of potatoes. He wanted to protect the company from rising prices should there be a blight. True False True or False: Oscar uses the futures contract to lock in a price that he can count on when he harvests and sells his potatoes True False Nikolas's, Alejandro's and Lamont's Experiences with Futures Contacts True or False: Nikolas invested in a futures contract a year ago. A year later, with a hefty profit, Nikolas instructs the futures exchange to close out his position. The price of underlying product fell since he bought the contract True False True or False: Alejandro made a lot of money trading in futures. Alejandro is probably an average investor. True False True or False: Lamont lost a lot of money trading in futures. Lamont is probably a professional investor. False True