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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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