By taking the long position on a futures contract of $100,000 at a price of 96 you are agreeing to ________ a ________ face value security for ________.
A)sell;$100,000;$96,000.
B)sell;$96,000;$100,000.
C)buy;$100,000;$96,000.
D)buy;$96,000;$100,000.

Question

Quizplus · Accepted Answer

By taking a long position, you are agreeing to buy the underlying instrument (in this case, the security) at a certain price in the future. So, by taking a long position on a futures contract of $100,000 at a price of 96, you are agreeing to buy a $100,000 face value security for $96,000. Therefore, the correct choice is C - buy; $100,000; $96,000.

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