Parties who have sold a futures contract and thereby agreed to ________ (deliver)the bonds are said to have taken a ________ position.

Question

Quizplus · Accepted Answer

When someone sells a futures contract and agrees to deliver the underlying asset in the future, they are taking a short position. The opposite, buying a futures contract and agreeing to receive the underlying asset in the future, is taking a long position. Therefore, choice A is the correct answer.

Parties Who Have Sold a Futures Contract and Thereby Agreed