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An apple farmer produces one million pounds of apples per year, but struggles with fluctuating apple prices. When prices are high, the farmer profits, but when prices drop, he incurs losses. On the other hand, a pie chain specializing in apple pies faces similar challenges. Both parties dislike the unpredictability of fluctuating prices and fear financial instability. To mitigate this risk, they can enter into a futures contract to lock in a set price for their products before the harvest.