The buyer of a futures contract
A)assumes the short position.
B)assumes the long position.
C)may not sell the contract without the permission of the original seller.
D)has the obligation to deliver the underlying financial instrument at the specified future date.

Question

Quizplus · Accepted Answer

The buyer of a futures contract assumes the long position, meaning they have the obligation to buy the underlying asset at the specified future date. The seller of the contract assumes the short position and has the obligation to sell the underlying asset at the specified future date. The buyer can sell the contract to someone else without permission from the original seller, as long as the exchange rules allow it. However, they still maintain the obligation to take delivery of the underlying asset or offset the contract before it expires.

The Buyer of a Futures Contract