Why would you buy $2$ December $2025$ coffee futures contracts today at today's trading price of $149?$ Please select the only answer choice below which makes sense.

You could be a day trader in which case, you are "going long." You believe the price of the Dec $2025$ coffee futures contract will increase at which point, you can sell the two contracts and make a profit.

You could also be a coffee seller someone who needs to sell about $75,000$ pounds of coffee in December of $2025.$ If this is the case, you are merely trying to manage price risk. By purchasing the two contracts at today's value of $149,$ you know that if the price of the December coffee futures contract increases between now and December, you are protected. All you would have to do is allow the contract to expire and take delivery of coffee from the exchange at $149.$ Or you could sell the contract at the higher price, make a profit on your future's trade, and then buy the coffee you need at the new, higher market price, in which case you would be spending $149$ per pound.

You could be a day trader in which case, you are "going short." You believe the price of the Dec $2025$ coffee futures contract will decrease at which point, you can sell the two contracts and make a profit.

You could also be a coffee buyer; someone who needs about $75,000$ pounds of coffee in December of $2025.$ If this is the case, you are merely trying to manage price risk. By purchasing the two contracts at today's value of $149,$ you know that if the price of the December coffee futures contract increases between now and December, you are protected. All you would have to do is allow the contract to expire and take delivery of coffee from the exchange at $149.$ Or you could sell the contract at the higher price, make a profit on your future's trade, and then buy the coffee you need at the new, higher market price, in which case you would be spending $149$ per pound.

You could be a day trader in which case, you are "going long." You believe the price of the Dec $2025$ coffee futures contract will increase at which point, you can sell the two contracts and make a profit.

You could also be a coffee buyer; someone who needs about $75,000$ pounds of coffee in December of $2025.$ If this is the case, you are merely trying to manage price risk. By purchasing the two contracts at today's value of $149,$ you know that if the price of the December coffee futures contract increases between now and December, you are protected. All you would have to do is allow the contract to expire and take delivery of coffee from the exchange at $149.$ Or you could sell the contract at the higher price, make a profit on your future's trade, and then buy the coffee you need at the new, higher market price, in which case you would be spending $149$ per pound.

You could be a day trader in which case, you are "going short." You believe the price of the Dec $2025$ coffee futures contract will increase at which point, you can sell the two contracts and make a profit.

You could also be a coffee buyer; someone who needs about $75,000$ pounds of coffee in December of $2025.$ If this is the case, you are merely trying to manage price risk. By purchasing the two contracts at today's value of $149,$ you know that if the price of the December coffee futures contract increases between now and December, you are protected. All you would have to do is allow the contract to expire and deliver coffee to the exchange and receive $149$ cents per pound for this coffee. Or you could sell the contract at the higher price, take a loss on your future's trade, and then sell the coffee at the new, higher market price, in which case you would be spending $149$ per pound.