When a call futures is exercised, the holder of the call acquires: choose one)
A) A long position in the futures contract
B) A short position in the futures contract
C) A long position in the underlying asset
D) None of the above

Question

Quizplus · Accepted Answer

When a call futures is exercised, the holder of the call acquires a long position in the futures contract, not the underlying asset itself. This means they have the right to buy the asset at the agreed-upon price.

When a Call Futures Is Exercised, the Holder of the Call