By selling short a futures contract of $100,000 at a price of 96, you are agreeing to deliver ________.
A) $100,000 face value securities for $104,167
B) $96000 face value securities for $100,000
C) $100,000 face value securities for $96000
D) 100,000 face value securities for $100,000

Question

Quizplus · Accepted Answer

Selling short a futures contract means you are agreeing to deliver the underlying asset at the specified price and date. In this case, the contract is for $100,000 and is sold at a price of 96, meaning the seller agrees to deliver $100,000 face value securities for $96,000. Therefore, the correct answer is C.

By Selling Short a Futures Contract of $100,000 at a Price