Shannon is a purchasing agent for a national chain of fast food restaurants. French fries are one of the most popular items on the menu. Paula is a potato farmer in Idaho. Shannon and Paula entered into a futures contract to set the price of Paula's potatoes. True or False: Shannon is obligated to purchase potatoes from Paula today. True False True or False: Shannon 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. True False True or False: Paula uses the futures contract to lock in a price that she can count on when she harvests and sells her potatoes. True False Valentina's, Nina's and Genna's Experiences with Futures Contacts True or False: Valentina invested in a futures contract a year ago. A year later, with a hefty profit, Valentina 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: Nina made a lot of money trading in futures. Nina is probably a professional investor. False True True or False: Genna lost a lot of money trading in futures. Genna is probably an average investor. False True