Investing in a futures contract:
A)guarantees a sale but not a sale price.
B)can be profitable for both the buyer and the seller simultaneously.
C)guarantees the buyer a profit on the contract.
D)creates a gain for one party without causing a loss for the other party.
E)can be offset by taking an opposing position.

Question

Quizplus · Accepted Answer

Investing in a futures contract can be offset by taking an opposing position, meaning that a buyer can sell the contract before its expiration or a seller can buy it back, thus eliminating their obligation. This allows for flexibility and the potential for profit for both parties, as the market price may change in their favor. None of the other choices are accurate statements about futures contracts.

Investing in a Futures Contract