A contract that requires the investor to buy securities on a future date is called a ________.
A) short position
B) long position
C) hedge
D) cross

Question

Quizplus · Accepted Answer

A contract that requires an investor to buy securities on a future date is called a long position. A short position is the opposite, where an investor is required to sell securities on a future date. A hedge is a strategy used to reduce risk, and a cross refers to a trade where two parties exchange securities or cash flows.

A Contract That Requires the Investor to Buy Securities on a Future