The short position in a futures contract is the party that will:
A) deliver a commodity or financial instrument to the buyer at a future date.
B) suffer the loss.
C) accept the risk.
D) benefit from increases in price of the underlying asset.

Question

Quizplus · Accepted Answer

The short position in a futures contract is obligated to deliver the underlying asset (be it a commodity or financial instrument) to the counterparty (the long position) at the specified future date, as per the terms of the contract.

The Short Position in a Futures Contract Is the Party