Paola is a purchasing agent for a national chain of fast food restaurants. French fries are one of the most popular items on the menu. Riya is a potato farmer in Idaho. Paola and Riya entered into a futures contract to set the price of Riya's potatoes. True or False: Paola is obligated to purchase potatoes from Riya today. False True O True or False: Paola is concerned there might be a potato blight that would cause the price of potatoes to decline. She wanted to protect the company from declining prices should there be a blight. O O False True True or False: Riya uses the futures contract to protect herself in case the price of potatoes declines by the time she harvests and sells them. O False True Sheryl's, Madison's and Gabriella's Experiences with Futures Contacts True or False: Sheryl invested in a futures contract a year ago. A year later, with a hefty profit, Sheryl instructs the futures exchange to close out her position. The price of underlying product fell since she bought the contract. True False True or False: Madison made a lot of money trading in futures. Madison is probably an average investor. O True O False True or False: Gabriella lost a lot of money trading in futures. Gabriella is probably an average investor. False True