In the futures markets the buyer of a financial futures contract:
A) takes the long position.
B) takes the short position.
C) has to record the contract with the clearing house.
D) has the obligation to deliver the underlying financial asset at the specified future date.

Question

Quizplus · Accepted Answer

In futures markets, the buyer of a financial futures contract takes the long position. This means that they are betting on an increase in the price of the underlying asset and have the right to buy the asset at a specified future date. They do not have the obligation to deliver the underlying asset. The clearing house records the contract, but this applies to both buyers and sellers.

In the Futures Markets the Buyer of a Financial Futures