By taking the long position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________.
A)sell;$100,000;$115,000.
B)sell;$115,000;$100,000.
C)buy;$100,000;$115,000.
D)buy;$115,000;$100,000.

Question

Quizplus · Accepted Answer

Choosing the long position means buying the underlying asset at the agreed upon price. In this case, the underlying asset has a face value of $100,000 and the agreed upon price is $115,000. Therefore, by taking the long position, you are agreeing to buy a $100,000 face value security for $115,000. Option C reflects this agreement.

By Taking the Long Position on a Futures Contract of $100,000