By buying a long $100,000 futures contract for 115,you agree to pay ________ for ________ face value securities.
A) $100,000; $115,000
B) $115,000; $100,000
C) $86,956; $100,000
D) $86,956; $115,000

Question

Quizplus · Accepted Answer

By buying a long futures contract at 115, you agree to pay $115,000 for $100,000 face value securities. The price of 115 implies that for every $100 of face value, you pay $115, making the total payment $115,000 for securities with a face value of $100,000.

By Buying a Long $100,000 Futures Contract for 115,you Agree