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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