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    • Question

      Which of the following best describes the position of an

      investor who is under an obligation to buy the underlying asset in a futures position?
      A Long-futures position Correct Answer Incorrect Answer
      B Short-futures position Correct Answer Incorrect Answer
      C Long-forward position Correct Answer Incorrect Answer
      D Short-forward position Correct Answer Incorrect Answer
      E Call option Correct Answer Incorrect Answer

      Solution

      An investor who is holding a long position in a futures contract is under an obligation to buy the underlying asset at a future date.

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