A speculator that has ________ a futures contract has taken a ________ position.
A) sold; long
B) purchased; short
C) sold; short
D) purchased; sold

Question

Quizplus · Accepted Answer

A speculator that sells a futures contract without owning the underlying asset is taking a short position. Hence, option C - sold; short is the correct choice. Option A is incorrect as selling implies taking a short position and not a long position. Option B is incorrect as purchasing a futures contract means taking a long position. Option D is incorrect as purchasing and selling are opposite actions and cannot be done together.

A Speculator That Has ________ a Futures Contract Has Taken